GST boost fuelling growth; private capex showing spark: HDFC Bank

“Against this background, we have an opportunity to activate loan growth, which is what we have started to do from this quarter. We believe that this will sustain and continue, but of course, we have to wait and watch,” he had said in mid-October.

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The rationalisation of rates by the GST Council in September, aimed at pushing consumption, has provided an added lift.

According to Macquarie’s report, the bank expects its margins to strengthen over the coming quarters as it replaces borrowings inherited from the HDFC Ltd merger in July 2023 with deposits. As deposits are repriced lower following the Reserve Bank of India’s 100-basis-point rate cut, the bank anticipates further tailwinds on this front.

HDFC Bank's net interest margin (NIM), a key profitability metric, stood at 3.3 per cent in Q2FY26, down from 3.5 percent a year earlier and 3.4 per cent in the previous quarter.