HDFC Bank Q2 Results Today, Margins in Focus

HDFC Bank reports September quarter results today, Saturday, after shares closed at Rs 728.85 on Friday, up 0.28%, with investors looking for margin recovery after a June quarter that disappointed the market. In the provisional business update, gross advances rose 16.3% year on year to Rs 32.19 lakh crore, while deposits grew 18.8% to about Rs 33.27 lakh crore, showing deposits growing faster than loans. The June quarter set the baseline: standalone net profit rose 5% to Rs 19,060 crore, net interest income grew 7% to Rs 33,534 crore, and net interest margin stood at 3.26% on total assets. Asset quality was solid, with gross NPA at 1.17% and credit cost at 0.40%, but the stock fell after those results as margins drew concern. HDFC Bank is the largest private lender and a heavyweight in the Nifty, so its numbers shape sentiment across banking. Faster deposit growth should ease funding pressure, but the market will watch whether NII growth picks up from 7% and whether margins stabilise. Any improvement in margin or loan growth could help sentiment, while another soft quarter would keep the focus on profitability. The stock has ranged between Rs 681.90 and Rs 1,020.50 over the past 52 weeks, with a market cap of around Rs 11.24 lakh crore, trading closer to its low than its high. Today’s results will show whether the deposit momentum is turning into stronger earnings. Disclosure: Palash Kag, Proprietor, Sarathi Research (SEBI Reg. No. INH000012740). No position held in HDFC Bank. This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Please consult a registered advisor before making investment decisions.