HDFC Bank logs 5% profit rise in Q1, provisions drop sharply
Net profit at ₹19,060 cr, NII up 6.7%. Provisions fall to ₹3,060 cr from ₹14,442 cr a year ago. Gross NPA stable at 1.17%.
— 4 earlier stories on HDFC Bank Ltd. →What's new
- Net profit up 5% YoY to ₹19,060 cr
- Provisions fall to ₹3,060 cr from ₹14,442 cr in year-ago quarter
- Gross NPA at 1.17% vs 1.15% in March 2026
Why this matters
The sharp drop in provisions pushed profit growth, but core NIM of 3.26% shows margin pressure persists. The ₹1,000 cr investment in HDFC Life signals continued support, though capital allocation will be watched.
What we're watching
- Whether provisions can stay low or revert higher
- NIM trajectory given competitive lending rates
- Loan growth sustainability at 15.4% in a moderating economy
The full read
HDFC Bank's Q1 results were steady but unspectacular. Net profit rose 5% to ₹19,060 crore, driven almost entirely by a collapse in provisions. Provisions were ₹3,060 crore versus ₹14,442 crore a year ago, when the bank had booked a large floating provision. Core net interest income grew a modest 6.7% to ₹33,530 crore, and the net interest margin slipped to 3.26% of assets. Gross non-performing assets inched up to 1.17% from 1.15% in March, but remain well controlled. Deposits grew 14.7% and advances 15.4%, both healthy. The bank also deployed ₹1,000 crore to buy HDFC Life shares, keeping its stake at 50.5%. For a ₹12 lakh crore bank, this is a routine quarter. No surprises, no fireworks. The investment case hinges on whether NIM stabilises and provisions stay low.
Questions answered
- How much did HDFC Bank’s net profit rise in Q1 FY27?
- Net profit grew 5% year-on-year to ₹19,060 crore, compared to ₹18,155 crore in Q1 FY26.
- Why did provisions fall so sharply?
- Provisions dropped to ₹3,060 crore from ₹14,442 crore a year ago because the year-ago quarter included a large floating provision that did not recur.
- What is the net interest margin?
- NIM stood at 3.26% of total assets, indicating some compression compared to historical levels.
- Did HDFC Bank increase its stake in HDFC Life?
- The bank was allotted 1.45 crore shares of HDFC Life for ₹1,000 crore, maintaining its holding at 50.5%.
- How did deposits and advances grow?
- Total deposits rose 14.7% year-on-year to ₹31.7 lakh crore, and gross advances increased 15.4% to ₹30.6 lakh crore.
HDFC Bank Ltd.
Latest quarter · Jun 2026
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