HDFC Bank Q1 results: Net profit rises 12%, NII advances 5%; bank announces bonus issue of 1:1

HDFC Bank, the country's largest private sector lender, on Saturday, July 19, reported net profit of ₹18,155 crore in the first quarter of current financial year, marking an increase of 12% from ₹16,175 crore in the same period last year.

The bank's net interest income or the difference between interest earned on loans and expended on deposits rose 5% to ₹31,438 crore in June quarter as against ₹29,837 crore in the year-ago period.

HDFC Bank's provisions saw a massive spike as its provisions and contingencies jumped 455% annually to ₹14,441.63 crore.

“The Bank's credit performance across all segments continues to remain steady, in a credit environment that remains benign. The Bank has considered this as an opportune stage to enhance its floating provisions, which are not specific to any portfolio, nor meant for any specific anticipated risks, but act as a countercyclical buffer for making the balance sheet more resilient. Accordingly, the Bank has made floating provisions of ₹9,000 crore, and additional contingent provisions of ₹1,700 crore during the quarter,” the Mumbai-based lender said.

The bank's asset quality deteriorated slightly as its gross non-performing assets (NPA), as a percentage of total advances, came in at 1.40% as against 1.33% in the year-ago period. Its net NPA came in at 0.47% as against 0.39% in the same period last year.

In absolute terms, HDFC Bank's gross NPA jumped to ₹37,040.80 crore from ₹33,025.69 crore in the corresponding period last year.

Operating expenses for the quarter ended June 30, 2025 were ₹1,7430 crore, as against ₹16,620 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter, excluding the transaction gains mentioned above was at 39.6%.

Gross advances at the end of June quarter came in at ₹26.53 lakh crore at the end of first quarter, up 6.7% over June 30, 2024. Advances under management grew by 8% annually.

“Retail loans grew by 8.1%, small and mid-market enterprises loans grew by 17.1% and corporate and other wholesale loans grew by 1.7%. Overseas advances constituted 1.7% of total advances,” HDFC Bank said.

HDFC Bank bonus issue and dividend

HDFC Bank's board approved bonus issue of shares in ratio of 1:1 that is one equity share of ₹1/- each for every one fully paid-up equity share of ₹1 each held by the shareholders of the bank.

The bank's board also approved special interim dividend of ₹5 per share.

At the end of the first quarter, HDFC Bank's distribution network· was at 9,499 branches and 21,251 ATMs across 4,153 cities.

HDFC Bank shares ended 1.47% lower at ₹1,957 a day ahead of its earnings announcement.