18 companies including HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IDBI Bank, Central Bank of India, Punjab & Sind Bank, India Cements, and Ixigo are set to declare their Q2FY27 earnings today, October 17, 2026, when markets are closed. According to Business Standard, these banks' share prices will be in focus as investors await the quarterly results. The timing of results announcement during the weekend typically leads to heightened market interest when trading resumes on Monday.
HDFC Bank reported a consolidated net profit of ₹20,700 crore for Q2 FY27, representing a 5.55% increase, with the results showing mixed performance across income streams. The bank's net interest income (NII) grew 10% YoY to ₹34,619 crore compared to ₹31,551.50 crore in Q2FY26, though net interest margins declined to 3.2% from 3.3% in the quarter-ago period. Other income declined 4% YoY to ₹13,831 crore from ₹14,350 crore, primarily due to treasury trading gains falling significantly to ₹780 crore compared with ₹2,390 crore in the previous year. Revenue climbed to ₹48,450 crore in Q2FY27 versus ₹45,900 crore in Q2FY26, with tax expense rising 11% YoY to ₹6,400 crore from ₹5,782 crore. Provisions increased marginally by 2% YoY to ₹3,574 crore from ₹3,501 crore in the preceding quarter, with the total credit cost ratio at 0.44% for the quarter ended September 30, 2026. Excluding treasury trading gains, the bank's profit grew by around 12.6% YoY, highlighting the underlying strength of its core banking operations.
With Anup Bagchi set to take over as managing director and chief executive after Jagdishan's term ends on October 26, the outgoing chief highlighted the depth of the bank's leadership and the importance of institutional continuity. Speaking to CNBC TV18, Jagdishan described Bagchi as a seasoned financial services professional with 34 years of experience across banking and insurance. He expressed confidence that the depth of the management team would help preserve the institution's continuity and ethos. Bagchi, who is presently serving as an additional director on the bank board, attended the post-earnings call where he spoke about the institution's strengths and how he is "lucky" to lead the bank. He said the bank's transformational merger with home loan major parent HDFC has created a lot of strength but hinted at more work needed to be done on the balance sheet. Jagdishan announced that incumbent Deputy Managing Director Kaizad Bharucha has decided to leave, with both leaders citing personal reasons after decades of service. Bagchi said he will gather insights by engaging with all stakeholders, including regulators, employees and the current management team.
HDFC Bank's asset quality showed significant improvement with gross NPAs at 1.11% of gross advances as of September 30, 2026, compared with 1.24% in the same period last year. In absolute terms, gross NPAs stood at ₹35,810 crore compared with ₹34,289 crore previously. The bank's net NPAs also improved to 0.37% from 0.42% previously. Net NPAs position too improved to 0.37% of net advances against 0.42% earlier. Provisions and contingencies for the quarter were ₹3,570 crore, with the total credit cost ratio at 0.44% for the quarter ended September 30, 2026. Excluding treasury trading gains, the bank's profit grew by around 12.6% YoY, highlighting the underlying strength of its core banking operations. Gross NPAs were at 0.87% excluding NPAs in the agricultural segment in Q2FY27, compared with 0.91% in the June quarter and 0.99% in Q2FY26. The bank management said it has not witnessed any setbacks in the agri loan portfolio.
Total deposits grew robustly by 18.8% YoY to ₹33,27,449 crore as of September-end 2026, with deposit growth driven by 22.8% YoY growth in time deposits (mainly fixed deposits) to ₹22.75 lakh crore in the quarter. Gross advances increased 16.4% YoY to ₹32,19,500 crore as of September-end 2026, with retail loans growing 12% YoY, small and mid-market enterprises loans up 23.5%, and corporate and other wholesale advances increasing 16.4%. HDFC Bank had raised nearly $ 11.5 billion or nearly ₹1.1 lakh crore from FCNR (B) deposits from overseas in the quarter, with its overseas branches extending loans of $ 5.7 billion (nearly ₹54,800 crore) against these deposits. CFO Srinivasan Vaidyanathan explained that there were certain constraints and choices made over the last two quarters, and so the margin is slightly lower than where they had envisaged it would be, stating it would take a couple of more quarters to pull it back. The bank's overall employee base has declined by 2,849 during the three months and by around 10,000 over the year to 2.10 lakh staff members. Overall capital adequacy stood at 18.9% as of September 30, 2026, which was down from 20% in the year-ago period.
Jagdishan acknowledged that the bank had to substitute HDFC's market borrowings with deposits, due to which it had to take a lot of high-cost term deposits and that the shift in household behaviour to park savings in capital market instruments led to a dent in CASA deposits. He added that Bagchi may like to have a relook at the strategy going forward on the home loans front, where SBI has raced ahead of the bank. When asked about the bank mobilising only $11 billion in the FCNR(B) window against $18 billion by nearest rival ICICI Bank, Jagdishan said its thin overseas presence led to this outcome and adding strength in foreign presence must be a strategic focus going ahead. The bank management and Bagchi declined to comment on any other questions, including governance concerns, challenges the newcomer sees ahead, etc., asking reporters to focus on Q2 earnings. Bagchi concurred that the leadership has spent many years in the system and is fully committed, but refrained from commenting on whether he will consider a reset.
