New Delhi: Shares of HDFC Bank gained nearly 2 per cent on Monday after India’s largest private sector lender reported a 10 per cent jump in consolidated net profit for the September quarter (Q2 FY25), signalling steady growth and improving asset quality.
Stock surges to 52-week high
The bank’s stock climbed 1.74 per cent to reach a 52-week high of ₹1,020 on both the BSE and NSE during Monday’s trading session. Investor sentiment remained buoyant following the bank’s strong quarterly performance announced over the weekend.
Market analysts attributed the rally to consistent profitability, a reduction in bad loans, and improved credit quality indicators.
Strong Q2 earnings performance
HDFC Bank on Saturday reported a 10 per cent rise in consolidated net profit at ₹19,610.67 crore for the July–September 2025 quarter, compared to the same period last year.
On a standalone basis, the lender’s net profit grew 10.82 per cent year-on-year to ₹18,641.28 crore for Q2 FY25. The bank’s total income increased to ₹91,040 crore, up from ₹85,499 crore in the year-ago quarter, reflecting strong growth in interest and fee-based income.
Asset quality shows improvement
The bank’s gross non-performing assets (GNPA) ratio improved to 1.24 per cent as of September 2025, compared to 1.40 per cent in the previous quarter and 1.36 per cent in the same period last year. The improvement indicates stronger loan book quality and effective risk management.
Provisions and contingencies for the quarter stood at ₹3,500 crore, higher than ₹2,700 crore a year earlier but significantly lower than ₹14,441 crore in the preceding June quarter.
“The moderation in provisions and stable asset quality metrics reflect the bank’s prudent credit practices and improved recoveries,” said a market analyst tracking the banking sector.
Market outlook remains positive
Analysts said the latest results reaffirm HDFC Bank’s position as a leading player in India’s banking space, even amid a challenging macroeconomic environment.
“The numbers show a healthy combination of profitability and asset quality improvement. The margin outlook remains stable with steady credit growth, particularly in retail and SME segments,” said a senior equity strategist at a Mumbai-based brokerage.
With the stock touching a yearly high, experts expect continued investor interest in the counter, supported by strong fundamentals and robust growth in deposits and advances.
Conclusion
The upbeat quarterly performance and improving loan quality have lifted market sentiment around HDFC Bank. Analysts said the lender is well-positioned for steady earnings growth through FY26, given its diversified portfolio, technological investments, and stable funding base.