HDFC Bank , one of India's leading private sector banks, has reported a robust performance for the second quarter of the fiscal year, with significant improvements in profitability and asset quality. The bank's financial results have caught the attention of major brokerages, with Jefferies raising its target price for the stock.

Financial Performance Highlights

HDFC Bank's financial results for the September quarter showcase strong growth and improved asset quality:

The bank's profit growth was primarily driven by higher income and improved asset quality, despite an increase in provisioning costs.

Asset Quality Improvement

HDFC Bank's asset quality showed notable improvement:

• The gross non-performing asset (NPA) ratio declined to 1.24% from 1.40% in the previous year.
• The net NPA ratio also saw a reduction, falling to 0.42% from 0.47%.

This improvement in asset quality, particularly led by corporate recovery, has been highlighted as a positive factor by analysts.

Brokerage Insights

Following the release of these results, major brokerages have updated their outlook on HDFC Bank:

Jefferies

• Maintained 'Buy' rating
• Raised target price from ₹1,200.00 to ₹1,240.00
• Cited strong loan growth and positive margin outlook
• Increased earnings estimates by 2-6%

Morgan Stanley

• Retained 'Overweight' rating
• Target price set at ₹1,225.00
• Highlighted improving loan growth, robust asset quality, and strong market position

Market Implications

The strong performance of HDFC Bank, coupled with positive brokerage outlooks, may have significant implications for the banking sector and the broader market:

1. Sector Leadership: HDFC Bank's results could set a benchmark for the banking sector, potentially influencing investor sentiment towards other banks.

2. Economic Indicators: The bank's loan growth and improving asset quality may be seen as positive indicators for the overall economic health.

3. Investor Confidence: Upward revisions in target prices by major brokerages could boost investor confidence in the stock and the banking sector as a whole.

As HDFC Bank continues to demonstrate strong financial performance and garner positive analyst ratings, investors and market watchers will likely keep a close eye on the stock's movements and the bank's future strategies for sustaining growth in a competitive market environment.

HDFC Bank , one of India's leading private sector banks, has announced its unaudited financial results for the second quarter of the fiscal year 2026. The bank's Board of Directors approved the results during a meeting held on October 18, 2025.

Financial Performance

Key Metrics

Asset Quality

• Gross NPA ratio improved to 1.24% from 1.40% year-on-year
• Net NPA ratio decreased to 0.42% from 0.47% year-on-year

Provisions

• Provisions other than tax and contingencies decreased to Rs 35.00 billion in Q2, compared to Rs 144.00 billion in the previous quarter, representing a significant quarter-on-quarter decline.

Key Highlights

• The financial results cover the quarter and half-year ended September 30, 2025.
• The Board meeting commenced at 11:00 a.m. and the results were approved at 1:50 p.m.
• HDFC Bank has submitted both standalone and consolidated financial results to the BSE and NSE stock exchanges.
• Limited Review Reports from Joint Statutory Auditors accompany the results.

Regulatory Compliance

HDFC Bank has adhered to regulatory requirements by:

1. Submitting the results in accordance with Regulations 30, 33, and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
2. Following various circulars issued by SEBI and Stock Exchanges.
3. Publishing the results in newspapers in the prescribed format.

Trading Window

In compliance with the Bank's Share Dealing Code and SEBI (Prohibition of Insider Trading) Regulations, 2015:

• The trading window for the bank's designated persons and their immediate relatives will reopen on Tuesday, October 21, 2025.

Additional Information

• HDFC Bank has submitted a certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended September 30, 2025.
• This certificate was received from Datamatics Business Solutions Limited, the Registrar and Transfer Agents of the bank.

HDFC Bank continues to maintain transparency in its financial reporting, ensuring timely disclosure of its quarterly results to stakeholders and regulatory bodies.