HDFC Bank Q1 results: Net profit jumps 12.24% YoY at ₹18,155 crore; special interim dividend, bonus shares approved

HDFC Bank Q1 results:India’s largest private lending bank, HDFC Bank on Saturday, reported its first quarter results for FY26, wherein its profit after tax was reported at ₹18,155.21 crore, up by 12.24% YoY as compared to ₹16,174.75 crore in the same period last fiscal.

For the quarter ended June, the private bank reported an interest income of ₹77,470 crore, reflecting a 6% increase from ₹73,033 crore recorded in the same quarter of the previous financial year. HDFC Bank’s interest expenses totaled ₹46,032.23 crore during the review period, compared to ₹43,196 crore in the previous year, marking a rise of 6.6%.

HDFC Bank stated in its exchange filing that the net interest income (the difference between interest earned and interest expended) for the quarter ending June 30, 2025, increased by 5.4% to ₹31,439 crore, up from ₹29,839 crore for the quarter ending June 30, 2024.

The core net interest margin was recorded at 3.35% of total assets, indicating that asset repricing occurred more quickly than the repricing of deposits, compared to 3.46% for the previous quarter ending March 31, 2025.

In terms of operations, the operating profit was recorded at ₹35,734 crore, whereas provisions increased significantly to ₹14,442 crore, which included ₹9,000 crore in floating provisions and ₹1,700 crore in contingent provisions, consistent with the bank’s countercyclical approach.

As of June 30, 2025, gross advances reached ₹26.53 lakh crore, reflecting a year-on-year increase of 6.7%, while total deposits grew by 16.2% to ₹27.64 lakh crore.

The CASA ratio decreased to 33.9% from 38.2% in Q1 FY25, with savings account deposits amounting to ₹6.39 lakh crore and current account deposits totaling ₹2.98 lakh crore.

The lender has also benefited substantially from the recent IPO of its subsidiary HDB Financial Services, realizing a pre-tax profit of ₹9,128 crore from the share sale.

Asset Quality

The gross non-performing asset (GNPA) ratio was 1.40%, and the net NPA ratio was 0.47% as of June 30, both showing a slight increase compared to the same period last year. The return on assets remained stable at 0.48%.

Capital Adequacy

The capital adequacy ratio (CAR) increased to 19.88%, up from 19.33% in the same quarter of the previous year.

Bonus shares

The bank announced its first-ever issuance of bonus shares, allocated at a ratio of 1:1, meaning that members will receive one additional equity share for each fully paid-up equity share they hold as of the record date of August 27.

Special Interim Dividend

Additionally, HDFC Bank declared a special interim dividend of ₹5 per equity share for the fiscal year 2025-26. The record date for this Special Interim Dividend is scheduled for July 25, 2025, and it will be distributed to eligible members on Monday, August 11, 2025.

On Friday, HDFC Bank share price ended 1.47% lower at ₹1,957.40 apiece on the BSE.

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