HDFC Bank Q1 profit drops to ₹16,258 Cr despite ₹9,128 Cr HDB IPO gain
By : Sandhya
HDFC Bank reported a consolidated net profit of ₹16,258 crore for Q1 FY26, down from ₹16,475 crore in the same quarter last year, despite a one-time pre-tax gain of ₹9,128 crore from the IPO of its subsidiary, HDB Financial Services.
The decline in profit was mainly due to a sharp rise in provisions, which jumped to ₹14,442 crore. This includes ₹9,000 crore in floating provisions and ₹1,700 crore in contingent buffers, reflecting caution amid potential asset quality stress.
Key Highlights:
NII Growth: Standalone Net Interest Income (NII) rose 5.4% YoY to ₹31,438 crore.
CASA Ratio: Fell to 33.9% from 38.2% YoY. Savings deposits stood at ₹6.39 lakh crore and current account deposits at ₹2.98 lakh crore.
Capital Adequacy: Improved to 19.88% from 19.33%.
Other Income: Soared to ₹21,730 crore, aided by HDB IPO and strong trading gains.
NPA Ratios: Gross NPA at 1.40% and Net NPA at 0.47%, both slightly higher YoY.
Return on Assets (RoA): Held steady at 0.48%.
Operating Profit: Stood at ₹35,734 crore.
Bonus and Dividend Announcements:
The board approved:
A special interim dividend of ₹5 per share, payable on August 11 to shareholders as of July 25.
A 1:1 bonus issue, subject to approvals, with a record date of August 27.
Market Expectations vs Reality:
Analysts had estimated a 7% YoY rise in NII to ₹31,885 crore and a 7.4% profit growth to ₹17,385 crore. The actual numbers came in lower than expected, contributing to a 1.56% decline in HDFC Bank’s share price on Friday, closing at ₹1,959 on the NSE.
HDFC’s stake in HDB dropped to 74.19% post-IPO from 94.32% last quarter. Despite strong income growth, rising provisions and declining CASA weighed on overall performance.