HDFC Bank’s fiscal first quarter net profit grew 12.24% to Rs 18,155.21 crore, up from Rs 16,174.75 crore a year ago.

The country's largest private bank earned an interest income of Rs 77,470 crore, up 6% from Rs 73,033 crore in the same quarter of the previous fiscal.

NII and NIM

Net interest income, or the difference between interest paid and earned, grew 5.4% to Rs 31,440 crore in the June quarter from Rs 29,840 crore a year ago. 

Net interest margin was at 3.35% of total assets versus 3.46% in the preceding quarter ended 31 March 2025.

Provisions increased 455% year-on-year to Rs 14,442 crore, which included Rs 9,000 crore in floating provisions and Rs 1,700 crore in contingent provisions.

Loan growth

The lender’s gross advances grew 6.7% year-on-year to Rs 26.53 lakh crore as of 30 June 2025. Advances under management grew 8% to Rs 27.82 lakh crore.

Retail loans grew by 8.1% to Rs 6.79 lakh crore, small and mid-market enterprises loans by 17.1% to Rs 5.52 lakh crore and corporate and other wholesale loans by 1.7% to Rs 7.08 lakh crore. Sequentially, the corporate loan book declined by 1.3%.

Mortgage, which is the mainstay in the bank’s retail portfolio following merger, grew by just 7% to Rs 8.42 lakh crore in the June quarter.  

Retail constituted 57% of the loan mix as on 30 June 2025, same as the preceding quarter but up marginally from 56% a year ago.    

Deposit growth

The bank’s total deposits grew 16.2% YoY to Rs 27.64 lakh crore in the June quarter compared to Rs 23.79 lakh crore a year ago. 

Average deposits grew 16.4% YoY to Rs 26.58 lakh crore compared to Rs 22.83 lakh crore for the June 2024 quarter, and 5.1 % over Rs 25.28 lakh crore for the March 2025 quarter. 

The CASA ratio decreased to 33.9% from 38.2% in Q1 FY25, with savings account deposits amounting to Rs 6.39 lakh crore and current account deposits to Rs 2.98 lakh crore.

The lender gained from the recent IPO of its subsidiary HDB Financial Services, realizing a pre-tax profit of Rs 9,128 crore from the share sale.

Asset quality

The bank’s gross non-performing asset (NPA) ratio was at 1.4% as of 30 June, marginally better than the preceding quarter and year-ago period of 1.3%.

Net NPA ratio was at 0.5% versus 0.4% in the preceding March quarter and the earlier-year period.

Provisions

Provisions and contingencies for the quarter ended June stood at Rs 14,440 crore, which includes the floating provisions of Rs 9,000 crore and additional contingent provisions of Rs 1,700 crore, as against Rs 2,600 crore a year ago.

The return on assets remained stable at 0.48%.

Capital Adequacy

The capital adequacy ratio (CAR) increased to 19.88%, up from 19.33% in the same quarter of the previous year.

Bonus shares

The bank announced its first-ever issuance of bonus shares, allocated at a ratio of 1:1.

Special Interim Dividend

Additionally, HDFC Bank declared a special interim dividend of Rs 5 per equity share for the fiscal year 2025-26. 

The record date for this special interim dividend is scheduled for 25 July. It will be distributed to eligible members on 11 August.

The bank added 44 branches in the June quarter, taking the total count to 9,499 branches, with 51% being located in semi-urban and rural areas. A year ago, the lender had 8,851 branches.