HDFC Bank, India’s largest private sector lender, reported strong results for the first quarter of FY26. The bank posted a net profit of ₹18,155.21 crore, marking a 12.24% rise compared to ₹16,174.75 crore in the same quarter last year.
For the quarter ending June 2025, the bank’s interest income grew by 6% to ₹77,470 crore, up from ₹73,033 crore in the same period of FY25. Interest expenses also rose by 6.6% to ₹46,032.23 crore from ₹43,196 crore last year. As a result, the net interest income (NII) increased by 5.4% to ₹31,439 crore from ₹29,839 crore. The core net interest margin stood at 3.35%, slightly lower than 3.46% in the previous quarter.
The bank’s operating profit reached ₹35,734 crore. However, provisions rose significantly to ₹14,442 crore, which included ₹9,000 crore as floating provisions and ₹1,700 crore as contingent provisions, in line with the bank’s countercyclical strategy.
HDFC Bank’s gross advances stood at ₹26.53 lakh crore, reflecting a 6.7% year-on-year rise, while total deposits grew by 16.2% to ₹27.64 lakh crore. The CASA ratio dropped to 33.9% from 38.2% last year. Savings account deposits were ₹6.39 lakh crore, and current account deposits were ₹2.98 lakh crore.
The bank also gained a pre-tax profit of ₹9,128 crore from the IPO of its subsidiary, HDB Financial Services.
In terms of asset quality, the gross NPA ratio rose slightly to 1.40%, while the net NPA ratio was 0.47%. The return on assets remained steady at 0.48%. The capital adequacy ratio improved to 19.88%, compared to 19.33% in Q1 FY25.
In a major announcement, HDFC Bank declared its first-ever bonus share issue at a 1:1 ratio, with the record date set for August 27, 2025. The bank also approved a special interim dividend of ₹5 per share, with a record date of July 25, 2025. The dividend will be distributed on August 11, 2025.
