HDFC Bank’s profit increased by 5% to ₹19,060 crore:Net Interest Income increased by 6.7%; bank’s results were lower than experts’ estimates

HDFC Bank Limited announced its first-quarter results for the current financial year on Saturday. In this quarter (Q1 FY27), the bank’s standalone net profit increased by 4.98% year-on-year to ₹19,059.72 crore. However, this profit was lower than the CNBC-TV18 poll’s estimate of ₹19,332 crore. Net Interest Income Crosses ₹33,535 Crore The bank’s Net Interest Income (NII) increased by 6.7% year-on-year, reaching ₹33,535.95 crore. However, the Net Interest Income also failed to surpass the market’s poll estimate of ₹34,353 crore. Bank’s Net Interest Margin Stood at 3.26% In the first quarter, HDFC Bank’s Net Interest Margin (NIM) on total assets was recorded at 3.26%. On the other hand, if considered on the basis of interest-earning assets, this margin was 3.40%. Marginal change in asset quality, Gross NPA 1.17% On the asset quality front, the bank’s Gross Non-Performing Assets (GNPAs) stood at 1.17% of gross advances as of June 30, 2026. This figure was 1.15% on March 31, 2026, compared to 1.40% in the same quarter a year ago. Meanwhile, as of June 30, 2026, the bank’s Net Non-Performing Assets (NNPAs) were 0.41% of net advances. Status of Provisioning and Credit Cost In the first quarter, the bank’s total Provisions and Contingencies stood at ₹3,060 crore. Additionally, the bank’s total credit cost ratio for the quarter was recorded at 0.40%. Bank’s Share has fallen 17.2% this year On Friday, HDFC Bank’s share closed 1.4% higher at ₹819.60. So far in 2026, this stock has seen a decline of 17.2%, while the Nifty 50 index has shown a weakness of 6.9% during the same period. What are Net Interest Income and Net Interest Margin? What is a Non-Performing Asset or NPA? When an individual or institution takes a loan from a bank and does not repay it, it is called a bad loan or Non-Performing Asset (NPA). This means that the chances of recovering these loans are quite low. As a result, banks lose their money and go into losses. According to the rules of the Reserve Bank of India (RBI), if a bank loan installment is not paid for 90 days, i.e., three months, that loan is declared an NPA. In the case of other financial institutions, this limit is 120 days. Banks have to do this to clear their books.