HDFC Bank Q1 earnings: Net profit rises 12%; bonus issue, dividend cleared  

HDFC Bank Q1 Results: India’s largest lender by market cap on Saturday reported a 12% rise in standalone net profit for Q1 FY26. Net profit climbed to Rs 18,155 crore in the first quarter of the current fiscal compared to Rs 16,175 crore in Q1FY25. 

Return on assets rose to 0.48% in the last quarter against 0.47% in the year ago period. 

HDFC Bank’s gross NPA ratio rose to 1.40% in the June quarter compared to 1.33% in the June 2024 quarter. The net NPA ratio was 0.47% in the last quarter compared to 0.39% in the June 2024 quarter and 0.43% in the March 2025 quarter. 

Standalone net interest income (NII) rose 5.4 percent to Rs 31,438 crore in Q1 FY26. Core net interest margin (NIM) fell to 3.35 percent in Q1 from 3.46 percent in Q4 FY25. 

Operating expenses rose 4.9 percent year-on-year to Rs 17,434 crore in Q1 FY26, compared to Rs 16,621 crore in Q1 FY25. This includes Rs 6,158 crore in employee costs and Rs 11,276 crore in other expenses.

The CASA ratio slipped to 33.9 percent in Q1 from 38.2 percent in Q1 FY25. Savings account deposits stood at Rs 6.39 lakh crore and current account deposits at Rs 2.98 lakh crore at the end of the June 2025 quarter. 

Capital adequacy ratio (CAR) climbed to 19.88 percent from 19.33 percent in the same quarter last year

Debt to equity ratio slipped to 0.61 in the previous quarter against 1.02 in the June 2024 quarter. 

The cost-to-income ratio, excluding gains from the HDB Financial IPO, came at 39.6 percent.

Gross advances in the June quarter climbed 6.7% year-on-year to Rs 26.53 lakh crore while total deposits logged a rise of 16.2 percent to Rs 27.64 lakh crore in the last quarter. 

The bank also announced a bonus issue in the ratio of 1:1. 

The record date for determining the entitlement of the Members of the Bank to receive bonus equity shares is Wednesday, August 27, 2025.

The board cleared a special Interim Dividend of Rs 5 per equity share of Re 1/- each fully paid up (i.e. 500%), for the FY 2025-26. Record Date for determining the eligibility of members entitled to receive the said Special Interim Dividend is Friday, July 25, 2025. The Special Interim Divided shall be paid to the eligible Members on Monday, August 11, 2025.