HDFC Bank Q1 results: Net profit rises 5% to Rs 19,060 crore; NII up 6.7%; key takeaways
HDFC Bank: The most-valued lender on Dalal Street said its net interest income, which is interest earned less interest expended, rose 6.7 per cent to Rs 33,530 crore.
- Jul 18, 2026,
- Updated Jul 18, 2026 3:02 PM IST
HDFC Bank Ltd on Saturday reported a 4.98 per cent year-on-year (YoY) rise in net profit at Rs 19,059.72 crore for the June quarter, compared with Rs 18,155.21 crore in the corresponding quarter last year. The private lender said its profit, adjusted for prior year transaction gains (HDB Financial Serrvices partial divestment), prior year one-off provisions and prior year tax credits, grew 9.8 per cent YoY.
The most-valued lender on Dalal Street said its net interest income, which is interest earned less interest expended, rose 6.7 per cent to Rs 33,530 crore in the June quarter from Rs 31,440 crore in teh same quarter last year. Net interest margin (NIM) came at 3.2 per cent on total assets and 3.40 per cent based on interest earning assets.
Provisions jumps sequentially
HDFC Bank said its provisions and contingencies for the quarter stood at Rs 3,059.70 crore, higher than Rs 2,609.57 crore in the March quarter but lower than Rs 14,441.63 crore in the year-ago quarter. To recall, the bank had made a floating provision of Rs 9,000 crore in line with the board approved policy in the year-ago quarter.
Asset quality steady
For the quarter, HDFC Bank's gross non-performing assets stood at 1.17 per cent of gross advances against 1.15 per cent in the March quarter and 1.40 per cent in the year-ago quarter. Net non-performing assets were at 0.41 per cent of net advances as on June 30, 2026.
"The Bank's total Capital Adequacy Ratio (CAR) as per Basel IIl guidelines was at 19.6 per cent as on June 30, 2026 (19.9 per cent as on June 30, 2025) as against a regulatory requirement of 11.9 per cent. Tier 1 CAR was at 17.8 per cent and Common Equity Tier 1 Capital ratio was at 17.4 per cent as of June 30, 2026. Risk-weighted Assets were at Rs 30,520 billion (Rs 30,52,000 crore)," HDFC Bank said.
Distribution network
As of June 30, 2026, the bank's distribution network was at 9,694 branches and 20,958 ATMs across 4,175 cities. This was against 9,499 branches and 21,251 ATMs across 4,153 cities as of June 30, 2025. HDFC Bank said 50 per cent its 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 as of June 2026 against 2,18,822 as of June 2025.
Balance sheet size
HDFC Bank said its total balance sheet size increased to Rs 43.98 lakh crore as on June 30, 2026, from Rs 39.54 lakh crore a year earlier.
Average deposits grew 13.3 per cent YoY and 5.6 per cent QoQ to Rs 30.12 lakh crore in the June quarter. Average CASA deposits rose 11.2 per cent YoY and 4.2 per cent QoQ to Rs 9.57 lakh crore.
HDFC Bank Ltd on Saturday reported a 4.98 per cent year-on-year (YoY) rise in net profit at Rs 19,059.72 crore for the June quarter, compared with Rs 18,155.21 crore in the corresponding quarter last year. The private lender said its profit, adjusted for prior year transaction gains (HDB Financial Serrvices partial divestment), prior year one-off provisions and prior year tax credits, grew 9.8 per cent YoY.
The most-valued lender on Dalal Street said its net interest income, which is interest earned less interest expended, rose 6.7 per cent to Rs 33,530 crore in the June quarter from Rs 31,440 crore in teh same quarter last year. Net interest margin (NIM) came at 3.2 per cent on total assets and 3.40 per cent based on interest earning assets.
Provisions jumps sequentially
HDFC Bank said its provisions and contingencies for the quarter stood at Rs 3,059.70 crore, higher than Rs 2,609.57 crore in the March quarter but lower than Rs 14,441.63 crore in the year-ago quarter. To recall, the bank had made a floating provision of Rs 9,000 crore in line with the board approved policy in the year-ago quarter.
Asset quality steady
For the quarter, HDFC Bank's gross non-performing assets stood at 1.17 per cent of gross advances against 1.15 per cent in the March quarter and 1.40 per cent in the year-ago quarter. Net non-performing assets were at 0.41 per cent of net advances as on June 30, 2026.
"The Bank's total Capital Adequacy Ratio (CAR) as per Basel IIl guidelines was at 19.6 per cent as on June 30, 2026 (19.9 per cent as on June 30, 2025) as against a regulatory requirement of 11.9 per cent. Tier 1 CAR was at 17.8 per cent and Common Equity Tier 1 Capital ratio was at 17.4 per cent as of June 30, 2026. Risk-weighted Assets were at Rs 30,520 billion (Rs 30,52,000 crore)," HDFC Bank said.
Distribution network
As of June 30, 2026, the bank's distribution network was at 9,694 branches and 20,958 ATMs across 4,175 cities. This was against 9,499 branches and 21,251 ATMs across 4,153 cities as of June 30, 2025. HDFC Bank said 50 per cent its 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 as of June 2026 against 2,18,822 as of June 2025.
Balance sheet size
HDFC Bank said its total balance sheet size increased to Rs 43.98 lakh crore as on June 30, 2026, from Rs 39.54 lakh crore a year earlier.
Average deposits grew 13.3 per cent YoY and 5.6 per cent QoQ to Rs 30.12 lakh crore in the June quarter. Average CASA deposits rose 11.2 per cent YoY and 4.2 per cent QoQ to Rs 9.57 lakh crore.