India’s largest private lender, HDFC Bank Ltd, on Saturday posted a net profit of Rs 19,610 crore for the second quarter of FY27 that missed analysts' expectations.

The bank’s higher provisions and softer-than-expected net interest income weighed on performance even as the lender posted robust growth in loans and deposits, according to the NDTV Profit report.

The lender’s net profit rose 5.2 per cent year-on-year to Rs 19,610 crore in the quarter ended September 30.

However, key operating metrics came in below analysts' expectations, the report added.

Meanwhile, net interest income (NII), the difference between interest earned and interest paid, increased 9.7 per cent from a year earlier to Rs 34,619 crore below analysts' estimate of Rs 34,991.51 crore.

Net interest margin (NIM), measured against total assets, stood at 3.16 per cent.

Apart from that, provisions climbed 2.1 per cent year-on-year to Rs 3,574 crore from Rs 3,501 crore in the corresponding quarter last year.

Asset quality improved during the quarter.

The gross non-performing asset (NPA) ratio declined to 1.11 per cent as of September 30 from 1.24 per cent a year earlier, while the net NPA ratio improved to 0.37 per cent from 0.42 per cent.

In addition, HDFC Bank's average advances under management grew 14.1 per cent year-on-year to Rs 31.87 lakh crore.

Gross advances at the end of September rose 16.3 per cent to Rs 32.20 lakh crore.

Retail loans increased 11.7 per cent from a year ago, while lending to small and mid-market enterprises grew 23.5 per cent.

On the liabilities side, average deposits rose 16.8 per cent year-on-year to Rs 31.66 lakh crore.

Average current account and savings account (CASA) deposits increased 10.7 per cent to Rs 9.71 lakh crore.

Shares of HDFC Bank on Friday ended on a flat note at Rs 728.10 on the BSE. In the last one-year horizon, the banking stock has declined about 10 per cent and 12 per cent year-to-date.