Trading Gains Cloud the YoY Comparison
Non-interest income stood at ₹12,820 crore during the quarter, while fee and commission income increased to ₹8,450 crore from ₹7,590 crore in the year-ago period. The bank said the YoY comparison was affected by exceptional gains recorded in Q1 FY26 from the partial divestment of HDB Financial Services.
Provisions and contingencies stood at ₹3,060 crore during the quarter, while the cost-to-income ratio was 39.2%.
Loan Book Quality Gradually Improves
Gross non-performing assets (NPAs) as a percentage of gross advances eased to 1.17% as on June 30, 2026, from 1.40% a year earlier and 1.15% as on March 31, 2026. Excluding the agricultural segment, the ratio stood at 0.91%. Net NPAs were at 0.41% of net advances.
Deposits and Advances Drive Balance Sheet Expansion
The standalone balance sheet of HDFC Bank grew to ₹43,97,461 crore as of June 30, 2026, compared to ₹39,54,077 crore in the year before. The customer deposits grew by 14.7% to ₹31,70,830 crore from ₹27,64,089 crore, while the gross advances grew by 15.5% to ₹30,37,303 crore from ₹26,28,434 crore, indicating good deposit and advances growth for the quarter. Borrowings declined to ₹4,61,813 crore from ₹5,10,056 crore a year ago, indicating lower reliance on wholesale funding.
Capital Adequacy and Distribution
The Capital Adequacy Ratio under Basel III stood at 19.6% as of June 30, 2026, with the CET1 ratio at 17.4%.
HDFC Bank operated 9,694 branches and 20,958 ATMs across 4,175 cities and towns as on June 30, 2026, up from 9,499 branches and 21,251 ATMs across 4,153 cities a year ago. The employee count stood at 2,12,958, compared with 2,18,822 a year earlier.
Subsidiaries Deliver Across the Board
Key subsidiaries reported healthy gains during the quarter. HDB Financial Services, a non-deposit-taking NBFC, posted Net Profit of ₹790 crore, up 38.3% YoY. HDFC Life Insurance reported Net Profit of ₹610 crore, an increase of 11.9%. HDFC Asset Management Company posted Net Profit of ₹840 crore, up 12.1% YoY. HDFC Securities reported Net Profit of ₹300 crore, a rise of 28.3% over Q1 FY26.
About HDFC Bank
HDFC Bank is one of India's largest private sector banks by assets and market capitalisation. It serves retail and corporate customers through an extensive branch and digital banking network, offering products across retail banking, wholesale banking, and treasury operations.
Conclusion
The performance of HDFC Bank in Q1 FY27 was consistent, backed by good growth in the net interest income and good margins along with improved asset quality. Though the growth in profit was marginal because of the high base created because of some one-off gains last year, the bank continued to have an adequate capital cushion and a healthy balance sheet.
