HDFC Bank Q2 Net profit rises 10.8%

Today, October 18, 2025, HDFC Bank, India's biggest private sector bank, released its Q2 earnings. The private lender's board of directors had approved the financial results for the second quarter of FY26 and was set to convene on Saturday. 

 It is anticipated that the banking industry as a whole would post poor results for the quarter that ended in September 2025, with sector profitability plunging before rebounding in H2FY26. 

 The July–September quarter saw modest increases in HDFC Bank's net profit and net interest income (NII). In the second quarter of FY26, HDFC Bank posted a standalone net profit of ₹18,641.28 crore, up 10.8% from ₹16,820.97 crore in the same period last year.

In the second quarter of FY26, HDFC Bank posted a standalone net profit of ₹18,641.28 crore, up 10.8% from ₹16,820.97 crore in the same period last year. During the fiscal second quarter that concluded in September 2025, the lender's Net Interest Income (NII), which is the difference between interest collected and interest paid, increased 4.8% year over year to ₹31,551.5 crore from ₹30,114 crore. 

 In the second quarter of FY26, pre-provisions operating profit (PPOP) climbed 18.5% to ₹27,923.60 crore from ₹24,705.74 crore, YoY. Over the course of the quarter, the private sector lender's asset quality increased sequentially. 

 Net NPA down 6.75% QoQ to ₹11,447.29 crore, while gross NPA fell 7.42% QoQ to ₹34,289.48 crore. The Net NPA ratio decreased 5 bps QoQ to 0.42%, while the Gross NPA ratio reduced 16 bps QoQ to 1.24%.

Here are the highlights of HDFC Bank Q2 results today:

> Net profit up 10.8% YoY at ₹18,641.28 crore

> NII up 4.8% YoY at ₹31,551.5 crore

> PPOP up 18.5% at ₹27,923.60 crore

> Gross NPA down 7.42% QoQ at ₹34,289.48 crore

> Net NPA down 6.75% QoQ at ₹11,447.29 crore

> Gross NPA ratio down 16 bps QoQ at 1.24%

> Net NPA down 5 bps QoQ at 0.42%

> Provisions at ₹3,500.5 crore, up 29.6 YoY, down 75.76% QoQ

> Total deposits up 12.1% YoY at ₹28.02 lakh crore

> Gross advances up 9.9% YoY at ₹ ₹27.69 lakh crore

> Total number of branches at 21,417

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Federal Bank Q2FY26 Net profit drops 9.51%

Due to a spike in provisions, Federal Bank reported a 9.51% decrease in its September quarter consolidated net profit at Rs 991.94 crore on Saturday. For the previous year, the private sector lender earned a net profit of Rs 1,096.25 crore. 

 Due to a 6.23 percent increase in its loan book and a 0.06 percent constriction in the net interest margin year over year at 3.06 percent, the core net interest income increased 5.4% to Rs 2,495 crore.

According to a senior bank official, the lender wants to increase the book by 10–12% in the second half of the fiscal year. This is higher than the 7.6% growth in the first half and will result in a credit growth of less than 10% in FY26, even if the top end of the target for the second half is achieved. 

 This will be less than FY25's 12.14 percent. The bank's other revenue increased by 12.26% to Rs 1,082 crore. Manian stated that the quarter's deposit increase was 7.36% and that the Federal Bank will be concentrating on growing the proportion of low-cost current and savings account balances in the future.

According to the bank management, the slippages are less than the Rs 658 crore from the previous quarter, and the slippage ratio has been kept below 1%. From 1.91 percent at the end of the previous quarter and 2.09 percent on an annual basis, the lender's gross non-performing assets ratio improved to 1.83 percent. 

 The bank's overall provisions increased from Rs 196.14 crore to Rs 397.44 crore over the previous year, which had the biggest negative impact on profit growth. Manian clarified that the provision statistics are not comparable because the bank changed its provision policy on the exposures to unsecured loans in the December quarter of last year.

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ICICI Bank Q2 Net profit rises 5.2%

The standalone net profit of ICICI Bank, the second-biggest private sector bank in India, increased by 5.2% to ₹12,359 crore in the second quarter of FY26 from ₹11,746 crore in the same quarter of the previous fiscal year. 

 In Q2FY26, net interest income (NII), which is the difference between interest collected and interest spent, increased 7.4% year over year (YoY) to ₹21,529 crore from ₹20,048 crore. The net interest margin was 4.30 percent. 

 According to ICICI Bank, pre-provisions operating profit (PPOP) increased by 3.43% year over year to ₹17,297.96 crore from ₹16,723.18 crore in the September quarter.

Provisions (excluding provision for tax) declined to ₹914.11 crore in Q2FY26 compared to ₹1,233.09 crore YoY, and ₹1,814.57 crore, QoQ.

Asset quality of the bank improved sequentially. Gross Non-Performing Assets (GNPA) in Q2FY26 declined 3.57% to ₹23,849.66 crore from ₹24,732.65 crore in the previous quarter. Net NPA decreased 2.41% to ₹5,827 crore from ₹5,971.09 crore, QoQ.

Gross NPA as a percentage of Gross Advances, or Gross NPA ratio, in Q2FY26 dropped to 1.58% from 1.67%, QoQ, while Net NPA ratio eased to 0.39% from 0.41%, QoQ.

According to ICICI Bank, as of September 30, 2025, its net domestic advances increased by 3.3% sequentially and 10.6% year over year. As of September 30, 2025, the retail loan portfolio accounted for 52.1% of the overall loan portfolio, growing 6.6% year over year. 

 The rural banking portfolio fell 1.3% year over year, whereas the business banking portfolio increased 24.8%. As of September 30, 2025, total advances have risen by 3.2% QoQ and 10.3% YoY to ₹14,08,456 crore. 

 In comparison to the minimum regulatory standards of 11.70% and 8.20%, respectively, ICICI Bank's total capital adequacy ratio was 17.00% and its CET-1 ratio was 16.35% as of September 30, 2025.

In Q2FY26, average deposits climbed by 1.6% QoQ and 9.1% YoY to ₹15,57,449 crore. While average savings account deposits increased by 8.5% year over year, average current account deposits increased by 12.6% year over year. By the end of the September 2025 quarter, total deposits had increased to ₹16,12,825 crore, a 7.7% YoY increase. In Q2FY26, the CASA ratio was 39.2%.

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IndusInd Bank Q2 results: Posts net loss due to higher provisions, NII drops 17.5% YoY

IndusInd Bank reported a net loss of 436.8 crores in the second quarter of the financial year 2025-26. Last year, the bank posted a net profit of Rs 1,331 crore in Q2 FY25. Rajiv Anand, the MD and CEO of IndusInd Bank, said in a statement that the loss in the quarter is a result of accelerated write-offs as well as increased provisions on microfinance as a prudent measure. 

IndusInd Bank reported a 17.5 per cent YoY Net Interest Income decline in the quarter. The bank’s NII in Q2 FY26 came down to Rs 4,409 crore from Rs 5,347 crore in Q2 FY25.

Furthermore, IndusInd Bank’s margins also squeezed in the quarter. The private sector bank’s margin in Q2 FY26 stood at 3.32 per cent, compared to 4.08 per cent in the same quarter of last fiscal year. 

The bank found itself in the midst of a crisis earlier this year as governance and accounting lapses surfaced, leading to the exit of its former CEO, Sumant Kathpalia and deputy Arun Khurana.

The bank’s asset quality remained largely stable despite the challenging environment. Gross non-performing assets (GNPA) ratio stood at 3.60 percent as of September 30, 2025, compared with 3.64 percent at the end of June 2025, while net NPA (NNPA) improved to 1.04 percent from 1.12 percent. Provision coverage ratio (PCR) rose to 71.81 percent from 70.13 percent in the previous quarter.

Total loan-related provisions stood at Rs 10,443 crore, representing 3.2 percent of the loan book.

Total deposits fell to Rs 3.90 lakh crore from Rs 4.12 lakh crore a year earlier, while advances declined to Rs 3.26 lakh crore from Rs 3.57 lakh crore. The share of low-cost current and savings account (CASA) deposits stood at 31 percent, with current account deposits at Rs 31,916 crore and savings deposits at Rs 87,854 crore.

The balance sheet size contracted to Rs 5.27 lakh crore from Rs 5.43 lakh crore a year ago.

Fee and other income fell 24.4 percent to Rs 1,651 crore from Rs 2,185 crore in the year-ago quarter. The pre-provision operating profit (PPOP) dropped 43 percent to Rs 2,047 crore from Rs 3,600 crore.

As of September 30, 2025, IndusInd Bank had 3,116 branches and banking outlets, along with 3,054 ATMs across India, serving approximately 42 million customers.

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IDFC First Bank Q2 Net profit surges 75.5% YoY

IDFC First Bank announced the July to September quarter earnings for FY26 on Saturday, October 18, 2025. The bank reported a 75.5% rise in net profit to ₹352.3 crore in the second quarter of the 2026 fiscal, compared to ₹200.7 crore in the same quarter a year ago, according to an exchange filing.

IDFC First Bank's total interest income rose nearly 11% to ₹9,936.8 crore in the second quarter of the financial year 2025-26, from ₹8,956.9 crore in the same period of the previous year.

The bank’s net interest income (NII) rose 6.78% in the second quarter of the financial year ended 2025-26 to ₹5,113 crore, from ₹4,788 crore a year ago.

The lender's percentage of gross non-performing assets (NPAs) to gross advances for the second quarter of the 2026 fiscal year stood at 1.86% compared to 1.92% in the same quarter of the previous financial year, the bank informed, while net NPAs stood at 0.52% for the quarter under review.

IDFC FIRST Bank serves 35 million customers, with a customer business of ₹5,35,673 crore comprising customer deposits of ₹2,69,094 crores and loans and advances of ₹2,66,579 crores. Customer deposits grew 23.4% YoY and loans 19.7% YoY, the bank said in a release.

Reflecting on the results, V Vaidyanathan, MD and CEO of IDFC First Bank, said, “The stress in the MFI (microfinance) business was an MFI industry issue and looks like it is behind us. 

Other than MFI, the asset quality of the Bank has always been stable for over a decade through cycles and continues to be so with Gross NPA at 1.86% and Net NPA at 0.52% as of 30th September 2025."

He added, "On the cost of funds, we expect it to drop from here on. The bank is witnessing improving operating leverage. For instance, in FY25, total Business, i.e. loans and customer deposits, grew by 22.7% YoY, against an increase in Opex of 16.5% YoY. 

Following on, in H1 FY26, total Business grew by 21.6% YoY, against an Opex (operational expenditure) increase of 11.8% YoY. We hope to sustain this trend.”

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Serious Concern of Long Pending and Unresolved Staff Issues in this PSU Bank

According to sources, after officials filed complaints against Regional Head (RH) Dharmendra Rajoria, a number of events have taken place in Sambalpur, Odisha. Since it started in May 2025, the problem has prompted numerous investigations, discussions with upper management, and a growing level of participation from officers' associations. 

 The officers' complaints have not been addressed despite multiple representations, and some officers have been subjected to punitive action by being moved to far-off places. Events in the complaint case timeline A formal complaint alleging unprofessional behavior, workplace harassment, and unethical business activities by RH, Dharmendra Rajoria, was filed with the MDCEO in the final week of May 2025. A copy of the complaint was also sent to other relevant authorities.

In the first week of June, 2025, a departmental inquiry was conducted under the supervision of the Deputy Zonal Manager (Dy ZM) Bhubaneswar. The complainants later alleged that the inquiry report was biased, claiming their concerns were not reflected and that the findings favored RH Dharmendra Rajoria.

In the third week of June 2025, the officers sent another communication to all concerned officials, highlighting the alleged bias in the first inquiry and requesting an independent and impartial inquiry by the Central Office.

HR sent relieving orders via WhatsApp to a number of officers in the first week of July 2025, including Chief Managers, a manager, and the HR officer of Sambalpur. These orders instructed them to report to new postings by July 7, 2025. 

 On July 22, 2025, more than 50 officers participated in a second independent investigation and filed written accusations against RH Dharmendra Rajoria. According to reports, this investigation provided real data and facts about the circumstances.

No formal decision has been made even after the second inquiry has been ongoing for 75 days. According to Kanal on October 14, 2025, the All India Bank Officers' Association (AIBOA) also offered their support in a letter sent to the MD & CEO on October 9, 2025. 

 The officers continue to demand that transfer orders be revoked and that RH Dharmendra Rajoria and other suspected participants face proper disciplinary punishment, as the management continues to review the matter.

According to sources, this case appears to be a clear example of the adage "Justice delayed is justice denied." Current Events and Unresolved Issues A number of unaddressed issues within the organization are brought to light by the current case involving RH Dharmendra Rajoria. 

The matter is still open despite numerous investigations and repeated requests from cops. The officers are still looking for a just settlement and the required administrative measures.

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Central Bank of India’s Q2 profit rises 33%

In the second quarter (Q2FY26), the Central Bank of India (CBoI) reported a 33% year-over-year (y-o-y) increase in standalone net profit at ₹1,213 crore. 

The bottom line was bolstered by a sharp decline in total provisions, including those related to income tax, restructured accounts, and non-performing assets. In the previous year, the public sector bank posted a net profit of ₹913 crore. For FY26, its board authorized a second interim dividend of 2%, or ₹0.20 per equity share with a face value of ₹10.

The profitability in the reporting quarter came despite decline in both net interest income and other income.Net Interest Income (interest earned less interest expended) dipped about 4 per cent y-o-y to ₹3,283 crore in Q2FY26 (₹3,410 crore in Q2FY25).

Other income, comprising fee-based income, treasury income and other non-interest income, declined about 8.50 per cent y-o-y to ₹1,507 crore (₹1,647 crore).

Net Interest income was down 52 basis points from 3.41 per cent in Q2FY25 to 2.89 per cent in Q2FY26.Gross non-performing assets (NPA) position improved to 3.01 per cent of gross advances as on September-end 2025 against 4.59 per cent as on September-end 2024.

Net NPA position too improved to 0.48 per cent of net advances against 0.69 per cent.Loan loss provisions declined 58 per cent to ₹143 crore (₹340 crore).

Total provisions, including towards loan loss, restructured accounts and income tax, were 54 per cent lower at ₹573 crore (₹1,252 crore).

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UCO Bank Q2 Results: Net profit rises 2.82% YoY

 

UCO Bank reported a 2.82% year-on-year increase in net profit for the second quarter ended September 30, 2025, as per its official earnings disclosure. The bank's net profit stood at ₹620 crore in Q2 FY26 compared to ₹603 crore in the same period of the previous year.

Net interest income (NII) for the quarter rose by 10.08% year-on-year to ₹2,533 crore, up from ₹2,301 crore in the prior year, the bank said in a filing. The net interest margin (NIM) was reported at 2.90% globally and 3.08% domestically for the quarter ended September 30, 2025.

Asset quality showed improvement, with the gross non-performing assets (GNPA) ratio reducing to 2.56% as of September 30, 2025, from 3.18% a year earlier, marking an improvement of 62 basis points year-on-year.

The net NPA ratio also improved to 0.43% from 0.73% in the same period last year, reflecting a 30 basis points improvement. The provision coverage ratio stood at 96.99% as of the end of the quarter.

UCO Bank's total business grew by 13.23% year-on-year to ₹5,36,398 crore as of September 30, 2025, from ₹4,73,704 crore a year earlier. Total deposits increased by 10.85% year-on-year to ₹3,05,697 crore, while gross advances grew by 16.56% to ₹2,30,702 crore.

The Retail, Agriculture, and MSME (RAM) segment registered a year-on-year growth of 22.87%, reaching ₹1,32,946 crore as of September 30, 2025. Within this segment, retail advances grew by 25.40% year-on-year to ₹58,987 crore, agriculture advances increased by 17.28% to ₹31,650 crore, and MSME advances rose by 23.80% to ₹42,309 crore.

The bank's capital adequacy ratio (CRAR) stood at 17.89% as of September 30, 2025, with a Tier I capital ratio of 15.90%. The credit-to-deposit ratio improved to 75.47% from 71.77% a year earlier.

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Bank of India(BOI) Q2 results: Net profit up 7.62%

Due to lower lending costs, public sector lender Bank of India (BOI) announced a 7.62% year-over-year increase in net profit to ₹2,555 crore for the July–September 2025 quarter (Q2FY26) on Friday. 

The shares of the Mumbai-based lender closed at ₹123.30 per share on the BSE, a 1.67 percent decrease. In Q2FY26, its net interest income (NII) decreased by 1.24 percent to ₹5,912 crore, from ₹5,986 crore in Q2FY25, the same quarter that ended in September 2024. 

 Net interest margin (NIM) decreased from 2.81 percent in Q2FY26 to 2.41 percent in Q2FY26, a 40 basis point year-over-year (Y-o-Y) decrease.

The managing director and CEO of BOI, R Karnatak, stated that a decrease in provisions for bad loans was the reason for the improvement in net earnings. After the deposit repricing is finished in the second half, the NII ought to start to get better. 

Customers have already received the repo rate reductions. In Q2FY26, the bank's non-interest income—which includes treasury, fees, commissions, etc.—dropped by 12% year over year to ₹2,220 crore. The profit from treasury operations, such as the sale and revaluation of investments, fell from ₹730 crore in Q2FY26 to ₹314 crore in Q2FY26, a 57% decline. 

 Following the results, Karnatak stated in a virtual media exchange that the bank did not experience much treasury income in the third quarter due to the current state of the market.

In Q2FY26, the credit costs, also known as provisions for non-performing assets (NPAs), dropped significantly to ₹472 crore from ₹1,427 crore in the previous year. In Q2FY26, advances increased 14.03 percent year over year to ₹7.09 trillion. 

 In the September quarter of FY26, advances to MSME, retail, and agricultural climbed 17.02 percent year over year to ₹3.47 trillion. According to Karnatak, the second half of the fiscal year is anticipated to see a strong credit offtake, including over the holiday season. A credit pipeline of ₹70,000 crore in corporate, retail, and agricultural loans has been approved. 

 At ₹8.53 trillion, total deposits grew 10.08 percent year over year. At the end of September 2025, the percentage of low-cost deposits, or current accounts and savings accounts (CASA), fell from 41% to 40%.

Gross non-performing assets (NPAs) decreased from 4.41 percent in September 2024 to 2.54 percent in September 2025, indicating an improvement in the bank's asset quality. Additionally, net non-performing assets (NPAs) decreased from 0.94 percent in September 2024 to 0.65 percent in September 2025.

 In September 2025, the provision coverage ratio (PCR), which takes into account written-off accounts, increased from 92.22 percent to 93.39 percent. At the end of September 2025, the bank's capital adequacy was 16.69%, with Common Equity Tier-1 capital at 14.49%.

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Indian Bank Q2 Net profit rises 11.5%

 On Thursday, October 16, Indian Bank, a public sector lender, announced that its net profit for the second quarter of the current fiscal year increased by 11.5% year over year to ₹3,018 crore from ₹2,706 crore during the same time the previous year. 

The difference between interest earned and interest spent, or the bank's net interest income (NII), increased 6% year over year to ₹6,551 crore from ₹6,195 crore in the same quarter last year. Indian Bank continued its upward trajectory in asset quality. 

 While the net non-performing assets (NPA) ratio improved sequentially to 0.16% from 0.18%, the gross NPA ratio decreased to 2.60% from 3.01% in the prior quarter.

Compared to ₹691 crore in the previous quarter and ₹1,100 crore in the same quarter last year, the lender's provisions for the quarter came to ₹739 crore, indicating a decrease in provisioning needs as asset quality continued to improve.

 Indian Bank shares increased 2.52% to trade at ₹794.80 on Thursday after the results were announced. As of now in 2025, the stock has risen by around 55%, continuing its tremendous upward trajectory.

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