HDFC Bank has reported 5% growth in net profit at Rs 19059.72 crore for the quarter ended June 2026 (Q1FY2027). Net Interest Income (NII) increased 7% while the core fee income of the bank also improved 11% in Q1FY2027. The Net Interest Margin (NIM) of the bank fell to 3.26% in Q1FY2027 compared to 3.35% in the corresponding quarter of previous year.

On business front, the business growth accelerated to 15% at end June 2026 from 13% at end June 2026, as the loan book growth accelerated to 15%. However, the CASA ratio of the bank has declined to 32.3% at end June 2026 from 33.9% at end June 2025.

HDFC Bank had witnessed various one-offs in Q1FY2026 such as gains of Rs 9130 crore (Rs 7800 crore post tax) from a partial divestment of stake in subsidiary HDB Financial Services. The bank had utilized these gains to create floating provisions of Rs 9000 crore (post tax Rs 6800 crore) and additional contingent provisions of Rs 1700 crore (post tax Rs 1300 crore) in Q1FY2026. The bank had also reversed Rs 1144.46 crore of tax provisions on account of favourable orders.

NII growth improves as loan growth rises: Interest income increased 2% to Rs 79362.78 crore, while interest expenses were flat at Rs 45828.83 crore in Q1FY2027. NII improved 7% to Rs 33533.95 crore in Q1FY2027.

Margins ease: The bank has shown 88 bps YoY decline in cost of deposits to 5.78%, while yield on advances dipped 131 bps YoY to 10.37% in Q1FY2027. Thus, the NIM has eased 9 bps YoY to 3.26%, while fell 12 bps qoq to 3.26% in Q1FY2027.

Healthy growth in the core fee income: The non-interest income of the bank declined 41% to Rs 12821.60 crore in Q1FY2027. Bank has posted strong 11% growth in core fee income to Rs 8450 crore, while recoveries and other income improved 11% to Rs 2660 crore. However, the treasury income dipped 57% to Rs 420 crore and forex income fell 20% to Rs 1300 crore causing decline in the overall non-interest income in Q1FY2027.

Expense ratio improves: The operating expenses of the bank increased 4% to Rs 18187.49 crore, as other expenses moved up 4% to Rs 11772.66 crore, while employee expenses rose 4% to Rs 6414.83 crore in Q1FY2027. Cost to income ratio improved to 39.2% in Q1FY2027 compared with 39.6% in Q1FY2026 (excluding one-off gains).

Provisions and contingencies decline: The bank has shown 79% decline in provisions to Rs 3060 crore. The provisions were higher in Q1FY26 on account of bank creating floating provisions of Rs 9000 crore and contingency provisions of Rs 1700 crore). Excluding these extra provisions also, the bank has witnessed decline in provision to Rs 3060 crore in Q1FY2027 from Rs 3742 crore in Q1FY2026.

PBT increased 18% to Rs 25108.30 crore in Q1FY2027. Effective tax rate increased to 24.1% in Q1FY2027 from 14.7% in Q1FY2026. Net Profit increased 5% YoY to Rs 19059.72 crore in Q1FY2027.

Asset quality stable: The bank has maintained stable asset quality in Q1FY2027.

The fresh slippages of loans stood at Rs 8000 crore in Q1FY2027 compared with Rs 6200 crore in previous quarter and Rs 9000 crore in the corresponding quarter last year.

The recoveries and upgradations of NPAs stood at Rs 4000 crore, while the write-off of loans was at Rs 2300 crore in Q1FY2027.

Provision coverage ratio was steady at 66% at end June 2026 compared to 67% a quarter ago and 67% a year ago.

The capital adequacy ratio of the bank stood at 19.6% with Tier I ratio at 17.8% at end June 2026.

The risk weighted assets of the bank has increased 12% YoY to Rs 3052000 crore end June 2026.

Business Highlights:

Business growth improves: The business of the bank has increased at an accelerated pace of 15% YoY to Rs 6231630 crore end June 2026, as advances growth improved to 15% to Rs 3060800 crore and deposits growth improved to 15% to Rs 3170830 crore at end June 2026. The credit to deposit ratio rose to 96.5% at end June 2026 from 96.0% at end June 2025. Total balance sheet size was Rs 4397500 crore at end June 2026 as against Rs 3954100 crore at end June 2025.

CASA deposits ratio declines: The CASA deposits of the bank increased 9% YoY to Rs 1025300 crore at end June 2026. The current account deposits moved up 9% to Rs 354500 crore, while saving account deposits increased 10% to Rs 705800 crore end June 2026. The CASA ratio eased to 32.3% at end June 2026 compared to 33.9% at end June 2025, while declined from 34.1% at end June 2026. The term deposits have increased 17% to Rs 2145530 crore end June 2026.

Strong corporate loan growth: Within the loan book, the retail loans increased 7% YoY to Rs 1507400 crore at end June 2026, while credit to agriculture increased 8% to Rs 124100 crore and MSME credit increased 19% to Rs 655600 crore. The corporate credit has jumped 19% to Rs 840100 crore end June 2026. The overseas credit has increased 9% to Rs 48973 crore end June 2026. The share of retail, agriculture and MSME (RAM) eased to 74.7% at end June 2026 compared to 78.2% at end June 2025.

Investment book of the bank increased 3% YoY to Rs 919413 crore at end June 2026.

Branch expansion: The bank has added 5 branches and reduced 214 ATMs in Q1FY2027, taking overall tally to 9694 branches and 20958 ATM`s end June 2026. Bank’s distribution network was at 9,694 branches and 20,958 ATMs across 4,175 cities / towns at end June 2026 as against 9,499 branches and 21,251 ATMs across 4,153 cities / towns at end June 2025. About 50% of the branches are in semi-urban and rural areas. In addition, the Bank has 14,392 business correspondents, which are primarily manned by Common Service Centres (CSC). The number of employees were at 2,12,958 end June 2026 as against 2,18,822 at end June 2025.

Book value of the bank stood at Rs 375.4 per share at end June 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 367.3 per share at end June 2026.

Subsidiaries performance

HDB Financial Services (HDBFSL), is a non-deposit taking NBFC in which the Bank holds a 74.1% stake. For Q1FY2027, HDBFSL’s net revenue was at Rs 3180 crore. Profit after tax for Q1FY2027 was Rs 790 crore compared to Rs 570 crore for Q1FY2026, a growth of 38.3%. The total loan book was Rs 121800 crore end June 2026. Stage 3 loans were at 2.34% of gross loans. Total CAR was at 21.3% with Tier-I CAR at 17.1%.

HDFC Life Insurance Company Ltd (HDFC Life), in which the Bank holds a 50.5% stake, is a leading life insurance solutions provider. Profit after tax for Q1FY2027 was Rs 6.0 crore compared to Rs 550 crore for Q1FY2026, a growth of 11.9%.

HDFC ERGO General Insurance Company Ltd (HDFC ERGO), in which the Bank holds a 50.2% stake, offers a range of general insurance products. Profit after tax for Q1FY2027 was Rs 220 crore compared to Rs 210 crore for Q1FY2026.

HDFC Asset Management Company Ltd (HDFC AMC), in which the Bank holds a 52.3% stake, is the Investment Manager to HDFC Mutual Fund, and offers a comprehensive suite of savings and investment products. For Q1FY2027, HDFC AMC’s Quarterly Average Assets Under Management were approximately Rs 935100 crore. Profit after tax for Q1FY2027 was Rs 840 crore compared to Rs 750 crore for Q1FY2026, a growth of 12.1%.

HDFC Securities Ltd (HSL), in which the Bank holds a 94.0% stake, is amongst the leading broking firms. For Q1FY2027, HSL’s total revenue was Rs 950 crore. Profit after tax for Q1FY2027 was Rs 300 crore, as against Rs 230 crore for Q1FY2026, a growth of 28.3%.

Consolidated Financial Results

The Bank’s consolidated net revenue was Rs 85480 crore for Q1FY2027. The consolidated profit after tax for Q1FY2027 was Rs 19240 crore.

Financial Performance FY2026:

Bank has posted 11% increase in net profit to Rs 74671.29 crore in the year ended March 2026 (FY2026). The net interest income increased 5% to Rs 128686.04 crore, while non-interest income moved up 37% to Rs 62532.57 crore, leading net total income to increase 14% to Rs 191218.61 crore in FY2026. The operating expenses increased 7% to Rs 72660.33 crore, while provision and contingencies jumped 101% to Rs 23389.59 crore. PBT increased 8% to Rs 95168.69 crore in FY2026. The cost-to-income ratio improved to 38.0% in FY2026 compared to 40.5% in FY2025. An effective tax rate eased to 21.5% in FY2026 compared to 23.9% in FY2025. The net profit has increased 11% to Rs 74671.29 crore in FY2026.