HDFC Bank reported a 5% rise in standalone net profit for Q1 FY27 to ₹19,060 crore, but its (NIM) hit a record low of 3.26%, signaling ongoing challenges in profitability despite robust growth in deposits and advances. The bank also saw a marginal sequential increase in bad loans.
5%
Net Profit (YoY Growth)
Adjusted Growth: 9.8%→5%
📊 One chart explains it
Q1 FY27 Net Profit Growth (YoY)
Takeaway: HDFC Bank's reported profit growth lagged peers, but adjusted figures show stronger underlying performance.
⏳ Time Machine
How today’s news fits into the bigger picture
April 2026
RBI keeps repo rate unchanged at 5.25%
The Reserve Bank of India (RBI) maintained the at 5.25%, influencing the cost of funds for banks and impacting their s amidst competitive pressures.
March 2026
HDFC Bank Chairman resigns amid 'governance' concerns
Atanu Chakraborty stepped down as part-time Chairman of HDFC Bank, citing governance concerns, which drew investor attention to internal practices.
July 2023
HDFC Ltd. merges with HDFC Bank
The merger of Housing Development Finance Corporation (HDFC Ltd.) with HDFC Bank was completed, creating a significantly larger entity but also leading to integration challenges and impacting various financial metrics, including a temporary surge in balance sheet size and subsequent adjustments.
June 2022
RBI increases repo rate by 50 bps
The RBI increased the by 50 basis points to 4.90% to curb inflation, marking one of several rate hikes that subsequently raised the cost of funds for banks.
2015-2016
Asset Quality Review initiated by RBI
The Reserve Bank of India conducted an extensive (AQR) across the banking sector, forcing banks to recognize non-performing assets, which significantly increased reported NPAs and led to higher provisioning.
Today
HDFC Bank announces Q1 FY27 results, showing modest profit growth but declining Net Interest Margins.
What happens next?
Analysts will closely watch HDFC Bank's commentary on NIM trajectory and deposit strategies in the next quarter, with results expected in mid-October 2026.
India's largest private lender, HDFC Bank, announced a 5% year-on-year increase in net profit, reaching ₹19,060 crore for the April-June 2026 quarter. However, this growth was tempered by a significant drop in its Net Interest Margin (NIM) to **3.26%**, a record low for the bank. While net interest income (NII) grew by 6.7% to ₹33,534 crore, the bank’s operating expenses also saw an increase. Asset quality remained largely stable, with gross non-performing assets (GNPA) at 1.17%, a slight sequential rise. Deposits grew impressively by 14.7% year-on-year to ₹31.71 lakh crore, and advances expanded by 15.4% to ₹30.61 lakh crore. Adjusted for a one-time gain from a subsidiary IPO in the prior year, the profit growth was closer to 9.8%.
💭 If you're wondering…
Reported profit is the raw figure. Adjusted profit growth for HDFC Bank excludes a one-time gain of ₹9,130 crore from the HDB Financial Services IPO in Q1 FY26, providing a clearer picture of the bank's core operational performance for the current quarter.
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