HDFC Bank Ltd.Deposits +18.8%, MSME +23.5%, NIM 3.32% at bottom

HDFC Bank's Q2 FY27 call, held on 17 October 2026, was the last for outgoing MD and CEO Sashidhar Jagdishan and the first for Anup Bagchi.

Deposits rose 18.8%, including a 4-point lift from the special FCNR(B) window, while CASA grew 10.8% and retail CASA 11.2%. Total AUM grew 15.3%, MSME and mid-market loans 23.5% and retail assets ex-agri 11.2%, up from 7.4% in March; retail disbursements crossed ₹90,000 crore against ₹76,000 crore in Q1, and ECLGS 5.0 disbursals of ₹41,000 crore were the highest of any bank. Gross NPA was 1.11%, credit cost 44 basis points and return on assets 1.8%.

Net interest margin fell to 3.32% with cost of funds flat at 4.4%; management called this the bottom and expects a neutral to positive path as the October repo hike feeds through by December. Kaizad Bharucha will retire by December, and Bagchi promised a strategy view in about a month. Management gave no margin number, no CASA ratio and no growth target for advances.