HDFC Bank Q1 Results: Net Profit Down 1.31% to Rs 16,258 Crore

HDFC Bank reported a 1.31% decline in net profit to Rs 16,258 crore for Q1 FY26. Total income increased to Rs 99,200 crore, and total expenditure rose to Rs 63,467 crore. The net interest margin narrowed to 3.35% from 3.46% in the previous quarter. Overall provisions jumped to Rs 14,442 crore, including a floating provision of Rs 9,000 crore. The gross non-performing assets ratio inched up to 1.4% as of June 30.

HDFC Bank, India's largest private sector lender, reported mixed results for the first quarter of FY26. The bank's consolidated net profit declined by 1.31% to Rs 16,258 crore, as per the latest exchange filing. This represents a decrease from Rs 16,475 crore reported in the year-ago period. However, on a standalone basis, the bank's net profit increased to Rs 18,155 crore from Rs 16,174 crore in the same quarter last year [2].

The total income for HDFC Bank for the June quarter stood at Rs 99,200 crore, up from Rs 83,701 crore in the year-ago period. The total expenditure for the quarter was Rs 63,467 crore, an increase from Rs 59,817 crore in the same period of the preceding fiscal [2].

The net interest margin (NIM) for HDFC Bank narrowed to 3.35% from 3.46% in the previous quarter, indicating a slight decline in profitability. The overall provisions for the bank increased significantly, jumping to Rs 14,442 crore from Rs 2,602 crore in the year-ago period. This includes a floating provision of Rs 9,000 crore [2].

The gross non-performing assets (NPA) ratio inched up to 1.4% as of June 30, compared to 1.33% three months ago. The net NPA stood at 0.47% in June, up from 0.43% in March [3].

Despite the mixed results, HDFC Bank's management remains optimistic about the bank's future. The bank's deposit growth remained strong at 16.4% from last year, while loan growth stood at 6.7%. The bank's management expects its advances to grow on par with the banking industry in the current fiscal and outpace industry credit growth in FY27 [4].

References:
[1] https://www.goodreturns.in/news/hdfc-bank-q1-results-net-profit-rises-12-2-yoy-to-rs-18-155-cr-board-recommends-1-1-bonus-shares-1443795.html
[2] https://www.business-standard.com/companies/quarterly-results/hdfc-bank-q1-results-net-profit-slips-1-31-to-rs-16-258-crore-125071900536_1.html
[3] https://www.cnbctv18.com/market/hdfc-bank-q1-results-nii-profit-asset-quality-provisions-slippages-loan-deposit-fy26-share-price-19639762.htm
[4] https://www.thehindubusinessline.com/money-and-banking/earnings-preview-hdfc-banks-margin-may-contract-slightly-in-q1/article69827582.ece