Summary:
HDFC Bank shares surged over 17% in 10 trading sessions, reaching a three-month high. The rally follows 4.7% profit growth, stronger deposits, rising net interest income and improving asset quality, alongside renewed investor interest in large private-sector banks.
HDFC Bank (NSE: HDFCBANK) shares extended their recent rally on Wednesday, November 11, 2026, after recovering strongly from their October lows. The stock has gained more than 17% in the last 10 trading sessions, bolstered by improved financial results and a renewed appetite for big private-sector banks.
Why are HDFC Bank shares going up?
Shares of HDFC Bank touched an intraday high of ₹813.70 during the Wednesday session, as against the previous close of ₹798.15. The stock had hit a 52-week low of Rs 669.20 toward the end of October before it rebounded.
The stock rallied to ₹801.90 on 9 November, recovering almost 20% from its October low. The advance on Wednesday took it further above the ₹800 mark and closer to its highest levels in about three months.
The rebound follows a difficult stretch for the bank’s shares, when worries over deposit growth, profitability and governance weighed on market sentiment.
The bank has returned to the limelight on the back of recent improvement in operating numbers, particularly in deposit mobilization and asset quality. Banking stocks have also been bought more broadly, adding to the rise.
Q2FY27 Financial Results
HDFC Bank’s standalone net profit rose 4.7% year-on-year to ₹19,510 crore in the September quarter of FY27. Net interest income — the difference between interest earned and interest paid — rose 9.7% to ₹34,620 crore.
The bank also reported double-digit growth in its loan and deposit books.
| Financial indicator | Q2FY27 Results |
| Net profit (individually) | Rs 19,510 crore |
| Increase of net profit | +4.7% y/y |
| Net interest revenues | ₹ 34,620 cr |
| Growth in NII | +9.7% year-over-year |
| Loans gross | ₹32,19,500 crores |
| Drives growth | +16.3% year-over-year. |
| Total deposits | Rs 33,27,400 crore |
| Growth of deposits | +18.8% y/y |
In a significant development as the bank continues to rebalance its balance sheet post its merger with HDFC Ltd, deposit growth outpaced loan growth in the quarter.
Asset quality improves
An improvement in asset quality has been another tailwind for the stock’s rebound.
Gross non-performing assets dropped to 1.11% of gross advances in September 2026, from 1.17% in June 2026 and 1.24% a year ago. Net NPAs were at 0.37 per cent.
The net interest margin was 3.16% on total assets and 3.32% on interest earning assets.
But profit margins remain under pressure in some areas. Other income fell 3.6% YoY to ₹13,830 crore. Operating expenses rose to ₹18,970 crore.
These figures indicate that while lending activity has increased, core earnings growth is more subdued than the recent stock price recovery.
What does the rally signify?
The overall equity market has also gotten better. Indian benchmark indices scaled their highest levels since February on 11 November, helped by revived foreign institutional inflows and softer crude oil prices.
This change in investor positioning has been good for large banking stocks and HDFC Bank is one of the key beneficiaries.
Other important factors will be whether deposit growth continues to outpace advances, funding costs moderate and net interest margins improve.
For now, the recovery for HDFC Bank is a mix of improving business numbers and renewed demand for large-cap financial stocks. Sustaining the rally will require more earnings growth than just a rebound in market sentiment.
