HDFC Bank Ltd. issued 14 lakh credit cards in the September quarter, representing an increase of nearly 19% from the previous quarter. According to reports from NDTV Profit, the bank's management described this growth as indicating the expansion of the growth runway during their second-quarter earnings call. The significant sequential increase raises questions about what is driving HDFC Bank's credit-card growth and whether it reflects a broader expansion in demand or gains by the lender. As per Investing.com, the bank added 1.4 million new credit card issuances during Q2 FY27, with management noting this growth reflects the expansion of the growth runway.
HDFC Bank reported profit after tax of ₹19.5 billion (approximately $220 million) for Q2 FY27, excluding trading gains, representing a 12.7% increase year-on-year. According to Investing.com, the bank's net interest margin narrowed to 3.32% in the quarter, though management indicated Q2 may have marked the bottom of the margin cycle. Total deposits rose 18.8% year-on-year, supported by strong branch-led growth and a larger liability franchise. Total assets under management increased 15.3% year-on-year, with retail disbursements accelerating to ₹90,000 crore from ₹76,000 crore in the prior quarter. The bank maintained a return on assets at 1.8%, in line with its historical range.
Credit-card spending across the banking system stood at ₹2.08 lakh crore in July, up from ₹1.93 lakh crore in July 2025 and ₹2.01 lakh crore in June 2026, as reported by NDTV Profit. Spending reached a record ₹2.18 lakh crore in March 2026. Average monthly credit-card spending rose from ₹1.93 lakh crore in January-December 2025 to around ₹2 lakh crore in the first seven months of 2026. The spending momentum reflects improving consumer confidence and continued growth in digital payments adoption.
The number of credit cards outstanding across the banking system increased to 12.29 crore in July, compared with 12.16 crore in June and 11.16 crore in July 2025, according to NDTV Profit data. Private-sector and public-sector banks added to their credit-card base during the period, while foreign banks recorded a decline in outstanding cards. HDFC Bank's management did not provide a specific reason for the quarter-on-quarter increase during their earnings call. The bank's focus on expanding its liability relationships, with 1.7 million new relationships added in Q2, positions it well for continued credit card growth.
HDFC Bank achieved significant operational improvements during Q2 FY27, with turnaround times on product deliveries reducing by 10-15% and service delivery TATs declining by 30% during the quarter. As per Investing.com, the bank is leveraging AI-based tools and restructuring initiatives to enhance productivity. Retail loan growth improved to 11.2% as of September from 9.1% in June, with growth balanced across personal loans, wheels business, gold and agri segments. The bank's focus on daily operating rigor across frontline, credit and operations verticals has enabled same-day, same-time resolution of products and services, supporting its expansion strategy.
