HDFC Bank reported a 16% year-on-year rise in standalone net profit to ₹16,720 crore for Q2 FY26, driven by robust retail lending and higher deposit growth. Net interest income rose 12% to ₹28,450 crore while net interest margin remained stable at 3.5%. Gross NPAs improved to 1.2%, down 10 bps sequentially. Management highlighted sustained demand across personal loans, auto, and SME segments, supported by festive-season momentum. Analysts expect margin pressure to ease gradually as deposit repricing stabilizes and loan growth sustains in high-yield categories.