HDFC Bank Q1 FY27 Results: Net Profit Climbs 5% to ₹19,060 Crore
By Kaushik Brahmakshatriya
Published On 19 July 2026.
HDFC Bank Q1 FY27 results
India’s largest private sector lender, HDFC Bank, announced its financial results for the April-June 2026 quarter (Q1 FY27) on July 18, 2026. The bank posted a standalone net profit of ₹19,059.72 crore, reflecting a modest 5% year-on-year growth. While the numbers show steady progress, they came in slightly below street estimates, keeping analysts watching the stock closely in the months ahead.
The bank’s net interest income (NII) — the core measure of lending profitability — rose 6.7% year-on-year to ₹33,535.95 crore. However, this too fell short of market expectations, largely due to continued margin pressure across the banking sector.
Q1 FY27 Financial Highlights
One of the notable trends this quarter was the narrowing of HDFC Bank’s net interest margin (NIM), which slipped to 3.26% on total assets — its lowest recorded level — down from 3.38% in the previous quarter. This compression was primarily driven by a shift in the deposit mix, with the bank’s CASA ratio declining as customers moved funds into higher-yielding term deposits.
On the asset quality front, the picture was largely stable with a slight uptick. Gross non-performing assets (GNPAs) inched up to 1.17% of gross advances, compared to 1.15% in the March quarter, though this marks a meaningful improvement from 1.40% a year earlier. Net NPAs stood at 0.41% of net advances.
Provisions and contingencies for the quarter came in at ₹3,060 crore, sharply lower than the ₹14,441 crore set aside in the year-ago quarter, which had included exceptional provisioning. This decline in provisioning helped cushion the bottom line.
Business Growth Highlights
Gross advances expanded by a strong 15.4% year-on-year to ₹30.61 trillion, while the bank’s total balance sheet size grew to ₹43.98 lakh crore from ₹39.54 lakh crore a year earlier. Average deposits increased 13.3% year-on-year to ₹30.12 lakh crore, and average CASA deposits rose 11.2% year-on-year.
HDFC Bank Q1 FY27 vs Q1 FY26 — Comparation
| Metric | Q1 FY27 (Jun 2026) | Q1 FY26 (Jun 2025) | YoY Change |
| Net Profit | ₹19,059.72 crore | ₹18,155 crore (approx.) | +5.0% |
| Net Interest Income (NII) | ₹33,535.95 crore | ₹31,438 crore (approx.) | +6.7% |
| Net Interest Margin (NIM) | 3.26% | 3.35% | Down |
| Gross NPA | 1.17% | 1.40% | Improved |
| Net NPA | 0.41% | 0.47% | Improved |
Balance Sheet & Capital Strength
| Parameter | As of June 30, 2026 |
| Total Balance Sheet Size | ₹43.98 lakh crore |
| Gross Advances | ₹30.61 trillion |
| Average Deposits | ₹30.12 lakh crore |
| Capital Adequacy Ratio (CAR) | 19.6% |
| Total Branches | 9,694 |
| Total ATMs | 20,958 |
What Investors Need to Know
Despite the earnings coming slightly below expectations, HDFC Bank continues to hold a dominant position in India’s banking landscape with a strong capital buffer well above the regulatory requirement. The bank’s stock had underperformed the broader Nifty 50 index through 2026, and this quarter’s numbers suggest margin pressure remains the key challenge management needs to address in coming quarters, particularly through deposit mix optimization and cost management.
Frequently Asked Questions (FAQ)
Q1. What is HDFC Bank’s net profit for Q1 FY27?
HDFC Bank reported a standalone net profit of ₹19,059.72 crore for the quarter ended June 2026, up 5% year-on-year.
Q2. What was HDFC Bank’s NII growth in Q1 FY27?
Net interest income grew 6.7% year-on-year to ₹33,535.95 crore.
Q3. What is HDFC Bank’s current NIM?
The net interest margin stood at 3.26% on total assets, its lowest recorded level, due to margin compression.
Q4. What is HDFC Bank’s gross NPA ratio for Q1 FY27?
Gross NPAs stood at 1.17% of gross advances as of June 30, 2026.
Q5. How much did HDFC Bank’s advances grow in Q1 FY27?
Gross advances grew 15.4% year-on-year to ₹30.61 trillion.
Q6. What is HDFC Bank’s capital adequacy ratio?
The bank’s total capital adequacy ratio stood at 19.6% as of June 30, 2026, well above the regulatory requirement of 11.9%.
Q7. Why did HDFC Bank’s provisions decline sharply this quarter?
Provisions fell to ₹3,060 crore from ₹14,441 crore a year ago, mainly because the year-ago quarter included exceptional one-time provisioning.
Disclaimer :
This is for informational purposes only and should not be considered investment advice. Please consult a certified financial advisor before making investment decisions.We are not responsible for any financial loss.
