HDFC Bank, India's most-valued lender, announced its financial results for the first quarter ending June 30, 2026, reporting a robust performance with a significant rise in net profit and net interest income.
Net Profit and Net Interest Income Growth
For the June quarter, HDFC Bank's net profit surged by 4.98% year-on-year, reaching ₹19,059.72 crore, compared to ₹18,155.21 crore in the corresponding period last year. When adjusted for prior year transaction gains, one-off provisions, and tax credits, the profit growth was even stronger at 9.8% year-on-year.
The bank's Net Interest Income (NII), which represents the difference between interest earned and interest expended, saw a healthy increase of 6.7%. NII stood at ₹33,530 crore for the quarter, up from ₹31,440 crore in the same quarter of the previous fiscal year. The Net Interest Margin (NIM) was recorded at 3.2% on total assets and 3.40% based on interest-earning assets.
Provisions and Asset Quality
Provisions and contingencies for the quarter amounted to ₹3,059.70 crore. This figure is higher than the ₹2,609.57 crore reported in the March quarter but significantly lower than the ₹14,441.63 crore from the year-ago quarter, which included a floating provision of ₹9,000 crore.
HDFC Bank maintained steady asset quality during the quarter. The gross non-performing assets (GNPAs) were at 1.17% of gross advances, a slight increase from 1.15% in the March quarter but an improvement from 1.40% in the year-ago period. Net non-performing assets (NNPAs) stood at 0.41% of net advances as of June 30, 2026.
Capital Adequacy and Network Expansion
As per Basel III guidelines, the bank's total Capital Adequacy Ratio (CAR) was 19.6% as of June 30, 2026, well above the regulatory requirement of 11.9%. Tier 1 CAR was 17.8%, and the Common Equity Tier 1 Capital ratio was 17.4%.
HDFC Bank continued to expand its distribution network. As of June 30, 2026, the bank operated 9,694 branches and 20,958 ATMs across 4,175 cities. Notably, 50% of its branches are located in semi-urban and rural areas, supported by 14,392 business correspondents.