HDFC Bank reports net profit rise of 5% to ₹19,060 cr in Q1 results of FY27

New Delhi, July 18: HDFC Bank, India’s largest private sector lender,  today reported a 5 per cent year-on-year (YoY) increase in the standalone net profit to ₹19,060 crore for the quarter ended June (Q1FY27).

The net profit rise is supported by lower provisions and a nearly 7 per cent increase in net interest income (NII).

In the year-ago period (Q1FY26), the bank’s net profit was boosted by a one-time gain from the sale of its stake in HDB Financial Services through an offer for sale (OFS) during the subsidiary’s initial public offering (IPO).

HDFC Bank booked a gain of ₹9,130 crore from the transaction in Q1FY26.

Adjusted for the one-off gain, net profit rose nearly 10 per cent YoY. On a sequential basis, net profit declined around 1 per cent.

Net interest income increased 6.7 per cent YoY to ₹33,535 crore in Q1FY27 from ₹31,438 crore a year earlier.

Other income declined 41 per cent YoY to ₹12,821 crore, compared with ₹21,729 crore in the corresponding quarter last year, which included the gain from the HDB Financial Services stake sale.

The bank’s net interest margin (NIM) narrowed to 3.26 per cent in Q1FY27 from 3.38 per cent in the March quarter, its lowest level on record, as cost of funds remained the same but yield on assets declined by 1 bps.

Provisions and contingencies stood at ₹3,060 crore during the quarter, compared with ₹2,609 crore in Q4FY26 and ₹14,441 crore in the year-ago period.

Asset quality weakened marginally during the quarter. Gross non-performing assets (GNPAs) rose to 1.17 per cent as of June 30, 2026, from 1.15 per cent at the end of March, while net NPAs increased by 3 basis points sequentially to 0.41 per cent.

Gross advances grew 15.4 per cent YoY to ₹30.61 trillion as of June 30, 2026. Advances under management rose 12.4 per cent over the year, driven by 7.2 per cent growth in retail loans and 18.7 per cent growth in the small and mid-market enterprise segment.

Total deposits increased 14.7 per cent YoY to ₹31.71 trillion at the end of June. CASA deposits rose 9.4 per cent to ₹7.01 trillion, comprising ₹3.76 trillion of savings account deposits and ₹3.25 trillion of current account deposits.

Time deposits grew 17.4 per cent to ₹21.46 trillion, while the CASA ratio stood at 32.3 per cent. (BVI)