HDFC Bank Q2 FY27 slides: deposits surge 19%, margins stabilize

HDFC Bank, India's largest private sector bank, reported a modest 4.7% increase in profit after tax to ₹195 billion for the second quarter of fiscal year 2027, as it navigated rising funding costs and evolving liability mix dynamics. Despite margin pressures, the bank's deposit growth remained robust, surging 19% year-over-year to ₹33.3 trillion, with average deposits at ₹31.7 trillion.

Net interest income climbed 9.7% to ₹346.2 billion, while total net revenue reached ₹484.5 billion. The bank's capital adequacy ratio remained strong at 18.9%, with Tier 1 capital at 17.2%, both comfortably above regulatory requirements. HDFC Bank's deposit growth outpaced the broader banking system's 12% increase, capturing approximately 320 basis points of market share, bringing its share of system deposits to 11.5%.

The bank's strategic shift toward retail and mid-market segments drove advances growth, with retail advances comprising 53% of total assets under management and mortgage lending growing significantly.