India’s largest private lender, HDFC Bank, on Saturday reported a standalone net profit of Rs 19,060 crore for the April-June quarter of the ongoing financial year 2027, up 5% year-on-year (YoY) from Rs 18,155 crore reported in the corresponding quarter of the previous financial year.
The bank’s net interest income, which is the difference between interest earned and interest expenses, rose 7% YoY to Rs 33,534 crore in Q1 FY27 from Rs 31,438 crore in Q1 FY26.
Notably, HDFC Bank's Q1 net profit exceeded Nomura's estimate of Rs 18,780 crore but fell short of Kotak Institutional Equities' forecast of Rs 19,691 crore. Nomura had projected NII at Rs 33,580 crore, while Kotak had estimated it at Rs 34,383 crore.
HDFC Bank’s gross non-performing assets (NPA) fell more than 3% YoY to Rs 35,846 crore, but net NPA increased slightly to Rs 12,357 crore during the quarter under review. Gross NPA ratio stood at 1.17% during the quarter under review, as against 1.15% in Q4 FY26 and 1.4% in Q1 FY26. Net NPA ratio meanwhile stood at 0.41%, as against 0.38% in Q4 FY26 and 0.47% in Q1 FY27.
The private lender’s provisions saw a sharp decline of 79% YoY to Rs 3,060 crore in the first quarter of FY27. However, this marks a 17% sequential rise from Rs 2,610 crore reported in the fourth quarter of FY26. Capital Adequacy Ratio, meanwhile, fell to 19.57% in Q1 FY27, from 19.88% in Q1 FY26 and 19.71% in Q4 FY26.
The bank’s net interest margin was reported at 3.26% on total assets, and 3.40% based on interest-earning assets. Its total balance sheet size increased to Rs 43.97 lakh crore as of June 30, 2026, as against Rs 39.54 lakh crore during the same period last year.
HDFC Bank shares have fallen around 1% in one week but gained over 4% in one month. The stock is overall down more than 17% in 2026 so far.
In the longer term, the stock has fallen over 17% in one year and 2% in three years, but gained around 8% in five years.
