HDFC Bank Q1 FY2027 net profit up 5% to 19,060 crore

HDFC Bank, India's largest private sector lender, reported a 5% year-on-year increase in net profit for the first quarter of fiscal year 2027, reaching 19,060 crore rupees. The results, announced on July 18, 2026, showed growth in core income but also highlighted persistent pressure on net interest margins.

The bank's net interest income rose 6.7% to 33,536 crore rupees, supported by steady growth in loans and deposits. Gross advances grew 15.4% year-on-year, while total deposits increased 13.3%. The bank's total balance sheet size expanded to 43.98 lakh crore rupees as of June 30, 2026.

Asset quality showed a mixed picture. Gross non-performing assets (GNPA) declined by over 3% year-on-year to 35,846 crore rupees, with the GNPA ratio improving to 1.17% from 1.40% a year earlier. However, net NPAs saw a marginal increase to 12,357 crore rupees. Provisions and contingencies for the quarter stood at 3,060 crore rupees, a sharp 79% decline from the year-ago quarter, which had included a large one-off provision. The bank's capital position remains strong, with a total Capital Adequacy Ratio of 19.6%, well above the regulatory requirement of 11.9%.

In an earnings call, Chief Executive...