HDFC Bank Q1 Results: Net Profit Up 5% YoY to ₹19,060 Cr; Gross NPAs Fall 3%

HDFC Bank reported a steady start to FY27, with standalone net profit rising 5% year-on-year (YoY) to ₹19,060 crore in the April-June quarter, compared with ₹18,155 crore in the corresponding period last year.

The lender reported growth across its core lending business during the quarter, although profitability from lending remained under pressure as margins moderated compared with both the year-ago period and the previous quarter.

The country's largest private lender also posted a 6.7% increase in net interest income (NII) to ₹33,534 crore, up from ₹31,438 crore a year ago, supported by growth in its lending business.

Asset Quality Remains Stable

HDFC Bank's asset quality remained broadly stable during the quarter, with gross bad loans declining from a year ago, although key NPA ratios increased slightly on a sequential basis.

Gross non-performing assets (GNPAs) declined more than 3% YoY to ₹35,846 crore, while net NPAs stood at ₹12,357 crore. The bank reported a gross NPA ratio of 1.17%, compared with 1.15% in the March quarter and 1.40% a year ago. The net NPA ratio came in at 0.41%, compared with 0.38% in Q4 FY26.

Provisions declined sharply during the quarter, falling 79% YoY to ₹3,060 crore, although they were 17% higher than the previous quarter.

Margins Ease, Balance Sheet Expands

HDFC Bank reported a net interest margin (NIM) of 3.26% on total assets and 3.40% on interest-earning assets during the June quarter. The lender's Capital Adequacy Ratio (CAR) stood at 19.57%, compared with 19.71% in the March quarter and 19.88% a year ago.

Its balance sheet continued to expand, with total assets rising to ₹43.97 lakh crore as of June 30, 2026, from ₹39.54 lakh crore a year earlier, reflecting continued growth in the bank's overall business.

HDFC Bank shares ended lower over the past week but remain up over the past month. The stock, however, has declined more than 17% so far in 2026.