HDFC Bank Q1 earnings: Net profit rises 5% to ₹19,060 crore, NII rises 7%; asset quality improves

HDFC Bank, the country's largest private sector lender, on Saturday, July 18, reported a net profit of ₹19,060 crore in the first quarter of current financial year, marking an increase of 5% from ₹18,155 crore in the same period last year driven by healthy loan growth and controlled credit costs.

The net profit in April-June period was also aided by sharply lower provisions for bad loans. Its provisions during the quarter dropped by 79% to ₹3,060 crore from ₹14,442 crore and the total credit cost ratio was at 0.40% for the quarter ended June 30, 2026.

The bank's net interest income or the difference between interest earned on loans and expended on deposits rose by 7% to ₹33,534 crore in first quarter from ₹31,438 crore in the year-ago period.

Net interest margin was at 3.26% on total assets, and 3.40% based on interest earning assets.

The Mumbai-based lender's asset quality showed a slight improvement as its gross non-performing assets, as a percentage of total advances, came in at 1.17% compared with 1.4% in the year-ago period. In absolute terms, gross NPAs came in at ₹35,846 crore.

At the end of June quarter, the bank's total balance sheet size was ₹43.97 lakh crore as against ₹39.54 lakh crore in the corresponding period last year.

HDFC Bank's average deposits were ₹30.11 lakh crore at the end of first quarter, up 13% from ₹26.57 lakh crore in the year-ago period.

The bank's average CASA deposits were ₹9.57 lakh crore for the June 2026 quarter, a growth of 11.2% over ₹8.6 lakh crore for the June 2025 quarter.

Its gross advances rose 15.4% in Q1 to ₹30.60 lakh crore, advances under management rose by 12.4%, retail loans advanced by 7.2%, small and mid-market enterprises loans grew by 18.7% and corporate and other wholesale loans grew by 18.6%. Overseas advances constituted 1.6% of total advances, HDFC Bank said in a press release.

The bank's distribution network was at 9,694 branches and 20,958 ATMs across 4,175 cities as against 9,499 branches and 21,251 ATMs across 4,153 cities.

HDFC Bank shares ended 1.4% higher at ₹819.60 a day ahead of earnings announcement.