HDFC Bank Reports Robust Growth in Deposits and Advances for Q2FY26

1 min read     Updated on 06 Oct 2025, 08:45 AM
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Shriram ShekharScanX News Team
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Overview

HDFC Bank's Q2FY26 update shows significant growth. Average deposits increased by 15.1% YoY to Rs 27.15 lakh crore, while average advances grew 9% YoY to Rs 27.95 lakh crore. Period-end deposits rose 12.1% to Rs 28.01 lakh crore, and period-end advances increased 8.9% to Rs 28.69 lakh crore. CASA deposits grew 8.5% YoY to Rs 8.77 lakh crore, with time deposits up 18.6% to Rs 18.36 lakh crore. Despite positive results, HDFC Bank's shares closed flat at Rs 964.75 on BSE.

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*this image is generated using AI for illustrative purposes only.

HDFC Bank , one of India's leading private sector banks, has released its quarterly business update for Q2FY26, showcasing strong growth in both deposits and advances. The bank's performance indicates resilience in its core banking operations amid a dynamic financial landscape.

Key Highlights

Metric Amount (Rs Lakh Crore) YoY Growth
Average Deposits 27.15 15.1%
Average Advances 27.95 9.0%
Period-end Deposits 28.01 12.1%
Period-end Advances 28.69 8.9%

Deposit Growth

HDFC Bank's average deposits reached Rs 27.15 lakh crore, marking a significant year-on-year increase of 15.1% from Rs 23.54 lakh crore in the previous year. On a sequential basis, average deposits grew by 2%. The period-end deposits stood at Rs 28.01 lakh crore, reflecting a 12.1% year-on-year growth.

Advances Growth

The bank's average advances under management stood at Rs 27.95 lakh crore, showing a 9% increase from Rs 25.64 lakh crore in the previous year. Sequentially, advances rose by 1.9%. The period-end advances were reported at Rs 28.69 lakh crore, representing an 8.9% year-on-year growth.

CASA Deposits

HDFC Bank's Current Account Savings Account (CASA) deposits saw an 8.5% year-on-year increase, reaching Rs 8.77 lakh crore. Meanwhile, time deposits grew more rapidly at 18.6%, amounting to Rs 18.36 lakh crore.

Market Response

Despite the positive quarterly update, HDFC Bank's shares closed flat at Rs 964.75 on the Bombay Stock Exchange (BSE). This muted market response suggests that the growth figures were largely in line with market expectations.

The bank's consistent growth in both deposits and advances underscores its strong position in the Indian banking sector. The higher growth rate in deposits compared to advances indicates a robust liquidity position, which could potentially support future lending activities.

Historical Stock Returns for HDFC Bank

1 Day5 Days1 Month6 Months1 Year5 Years
+1.04%+3.42%+1.82%+11.91%+21.59%+69.25%
HDFC Bank
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HDFC Bank Shares Fall 0.6% Despite Positive Brokerage Commentary Post-RBI Policy

1 min read     Updated on 03 Oct 2025, 10:26 AM
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Reviewed by
Radhika SahaniScanX News Team
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Overview

HDFC Bank shares fell 0.6% to ₹959.50, with sell quantity exceeding buy quantity. Jefferies maintains a positive stance on HDFC Bank and other private banks. The banking sector faces challenges in Q2, including tepid credit growth and margin pressures, but analysts expect improvement in the second half. HDFC Bank's market cap stands at ₹14.74 lakh crore.

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*this image is generated using AI for illustrative purposes only.

HDFC Bank shares declined 0.6% to ₹959.50 during trading, opening at ₹952 near the day's low with sell quantity exceeding buy quantity at 8.24 lakh versus 6 lakh shares. Jefferies maintained its positive stance on HDFC Bank along with Axis, ICICI, and SBI, noting that unchanged interest rates provide relief for private banks.

Brokerage Insights

Jefferies highlighted that the upcoming ECL (Expected Credit Loss) transition starting April 2027 will result in one-time charges, though the impact can be partially offset through lower risk weights over five years. Naveen Kulkarni from Axis Securities PMS said RBI's decision to keep repo rates unchanged was expected, noting GST rate rationalization should support festive season consumption while US tariff-related headwinds remain concerning.

Banking Sector Outlook

The banking sector's second quarter is expected to remain challenging with:

  • Tepid credit growth
  • Margin pressures
  • Weaker treasury performance
  • Higher credit costs

Analysts anticipate improvement from the second half with NIMs (Net Interest Margins) expected to bottom out, supported by deposit repricing and CRR (Cash Reserve Ratio) cut.

HDFC Bank Performance

HDFC Bank has traded between ₹806.50 and ₹1,018.85 over the past year with current market capitalization at ₹14.74 lakh crore.

Historical Stock Returns for HDFC Bank

1 Day5 Days1 Month6 Months1 Year5 Years
+1.04%+3.42%+1.82%+11.91%+21.59%+69.25%
HDFC Bank
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