HDFC Bank Q1 Profit Rises 5% To ₹19,060 Crore

HDFC Bank Ltd reported a standalone net profit of Rs 19,059.72 crore for the April-June quarter of FY27, registering a growth of 4.98% compared with the same period last year.

However, the earnings were slightly below the CNBC-TV18 poll estimate of Rs 19,332 crore.

The bank’s net interest income (NII), which represents the difference between interest earned and interest paid, increased 6.7% year-on-year to Rs 33,535.95 crore.

Despite the growth, NII also missed analysts’ expectations of Rs 34,353 crore.

HDFC Bank’s net interest margin (NIM) stood at 3.26% on total assets during the quarter. On interest-earning assets, the margin was higher at 3.40%, reflecting the bank’s lending profitability.

The private sector lender maintained a stable asset quality profile during the quarter. Gross non-performing assets (GNPAs) stood at 1.17% of gross advances as of June 30, 2026, compared with 1.15% at the end of March 2026.

However, asset quality improved from the year-ago period, when gross NPAs were at 1.40%.

Net non-performing assets (NNPAs) were reported at 0.41% of net advances as of June 30, 2026, indicating continued control over bad loans.

The bank reported provisions and contingencies of Rs 30.6 billion during the quarter, while the overall credit cost ratio stood at 0.40%. These provisions reflect the amount set aside by the bank to manage potential loan-related risks.

Ahead of the earnings announcement, HDFC Bank shares closed 1.4% higher at Rs 819.60 on Friday. However, the stock has declined 17.2% so far in 2026, compared with a 6.9% fall in the benchmark Nifty 50 index.

The quarterly results come as investors closely track the performance of India’s largest private sector lender following its merger with HDFC Ltd and the impact of changing interest rate conditions on lending growth and margins.

Despite missing market estimates, the bank continued to report steady profitability, controlled asset quality and stable credit metrics during the quarter.