HDFC Bank Stock Extends Gain To Second Day On Better-Than-Expected Q1 Performance

HDFC Bank share price extended gains to the second session after surprising the Street with its upbeat performance in the first quarter of financial year 2026. The stock price was trading near its record high in Tuesday's session.

HDFC Bank reported less-than-expected decline in the net interest margin, improved growth in advances and deposits, and stable asset quality. Jefferies and CLSA hiked the target price for the stock after the company released its first-quarter performance.

HDFC Bank is the third top contributor to the NSE Nifty 50 index, while it's the second top contributor to the NSE Nifty Bank index.

In Monday's session, HDFC Bank supported the Nifty 50 to rebound from a two day slump.

• Net interest income stood at Rs 31,438 crore, compared to Rs 29,837 crore year-on-year, marking a 5% increase YoY but a 2% decline quarter-on-quarter (QoQ).

• Other income (excluding one-offs) was Rs 12,601 crore, up 18% YoY from Rs 10,668 crore, and up 5% QoQ.

• Total other income reached Rs 21,729 crore, showing a significant 104% increase YoY from Rs 10,668 crore and an 81% increase QoQ.

• Operating expenses (Opex) were Rs 17,434 crore, up 5% YoY from Rs 16,620 crore, and down 1% QoQ.

• Operating profit came in at Rs 35,734 crore, surging 50% YoY from Rs 23,885 crore, and up 35% QoQ.

• Provisions stood at Rs 14,442 crore, increasing 352% QoQ compared to Rs 3,192 crore.

• HDFC Bank made a floating provision of Rs 9,000 crore in Q1FY26.

• Profit After Tax (PAT) was Rs 18,155 crore, up 12% YoY from Rs 16,174 crore, and up 3% QoQ.

• The Gross Non-Performing Asset (NPA) ratio was 1.4%, an increase of 7 basis points (bps) QoQ from 1.33%.

• The Net NPA ratio was 0.47%, an increase of 4 bps QoQ from 0.43%.