Major Indian lenders kicked off the FY27 earnings season on a positive note, with HDFC Bank, ICICI Bank, Yes Bank, Punjab National Bank and IDBI Bank all reporting profits in the April to June-quarter. While ICICI Bank, Yes Bank, Kotak Mahindra Bank and Punjab National Bank posted double-digit earnings growth, HDFC Bank and IDBI Bank reported modest gains.
In terms of estimates, Indian banks were expected to report a healthy growth in the June quarter, led by strong loan demand across retail and corporate verticals. The lenders were expected to face pressure from higher funding costs, slower deposit growth and pressure on net interest margins (NIMs).
HDFC Bank
India's largest private lender HDFC Bank Ltd's net profit for the first quarter of fiscal year 2027 rose 5% year-on-year. The bank posted a bottom-line of Rs 19,059 crore, as against Rs 18,155 crore in the same quarter previous year, in-line with analysts' estimates of Rs 19,720 crore.
The Net Interest Income (NII), which is the difference between interest earned and interest paid, surged 6.7% to Rs 33,534 crore from Rs 31,438 crore.
Provisions dropped significantly by 78.8% to Rs 3,060 crore from Rs 14,441 crore on a year-on-year basis. However, on a sequential basis, they jumped by 17.2% to Rs 3,060 crore from Rs 2,610 crore. Asset quality worsened as compared to the preceding quarter with Gross NPA rising to 1.17% from 1.15% and Net NPA rising to 0.41% from 0.38%
Operating profit fell 21.2% to Rs 28,168 crore from Rs 35,734 crore. Net interest margin (NIM) on total assets stood at 3.26%, marginally below analysts' estimate of 3.32%, while NIM on interest-earning assets was 3.40%.
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ICICI Bank
ICICI Bank Ltd's standalone net profit rose 16% year-on-year to Rs 14,804 crore in the June quarter from Rs 12,768 crore a year ago, beating Bloomberg's consensus estimate of Rs 13,373 crore.
NII surged 13% year-on-year to Rs 24,385 crore, against Rs 21,635 crore in the corresponding quarter last year.
Operating profit rose to Rs 20,386 crore, up from Rs 17,505 crore in Q1 FY26, and ahead of analysts' estimate of Rs 19,278 crore. NIM stood at 4.36%, compared with 4.34% a year earlier and above the Street estimate of 4.18%.
In terms of asset quality, gross non-performing assets (GNPA) improved to 1.38%, down from 1.67% a year ago. Net NPAs eased to 0.35% from 0.41% in the year-ago period.
Yes Bank
In Q1FY27, Yes Bank Ltd.'s net profit jumped climbed 34% year-on-year. The private sector lender posted a bottom-line of Rs 1,071 crore, compared to Rs 801 crore in the same quarter of last fiscal. NII rose 17% to Rs 2,786 crore from Rs 2,372 crore in the year-ago period.
Provisions surged 39% to Rs 394 crore from Rs 284 crore and operating profit rose 25% to Rs 1,704 crore from Rs 1,358 crore in the corresponding quarter of last year. Asset quality remained unchanged in the quarter under review as against the preceding quarter, with gross NPA at 1.3% and Net NPA at 0.2%.
NIM was also up 2.5% year-on-year but remained flat on a quarter-on-quarter basis. Gross slippages stood at Rs 964 crore compared to Rs 1,102 crore on a sequential basis and Rs 1,458 crore year-on-year. Provision coverage ratio dropped 20 basis points quarter-on-quarter to 81.7% from 81.9%, while return on assets (ROA) went down marginally by 10 basis points to 0.9% from 1.0%.
Kotak Mahindra Bank
Kotak Mahindra Bank posted a net profit of Rs 4,123 crore in the June quarter of current fiscal. The private-sector lender's net profit increased 26% year-on-year from Rs 3,282 crore, beating Bloomberg estimate of Rs 3,975 crore.
NII jumped 9.2% to Rs 7,928 crore from Rs 7,260 crore on an year on year basis, marginally below the estimate of Rs 8,002 crore.
Operating profit rose 10.2% to Rs 6,131 crore, against Rs 5,564 crore in the corresponding quarter of the previous year, higher than the estimated Rs 6,015 crore.
Asset quality remained stable during the quarter. Gross non-performing assets improved to 1.18% of total advances from 1.20% in the preceding quarter.
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Punjab National Bank
Punjab National Bank's net profit for the first quarter of fiscal 2027 tripled year-on-year. The lender reported a bottom-line of Rs 5,253 crore, agsinst Rs 1,675 crore in the same quarter last year. NII rose 2% to Rs 10,798 crore from Rs 10,578 crore.
Provisions doubled to Rs 792 crore from Rs 396 crore in the year-ago period. Asset quality improved slightly with net NPA down 1 basis point to 0.28% from 0.29%, and Gross NPA down 17 basis points to 2.78% from 2.95%.
Domestic Net Interest Margin went up 3 basis points to 2.64% from 2.61% quarter-on-quarter, but slipped year-on-year from 2.84%. Fresh slippages stood at Rs 2,080 crore, as against Rs 1,886 crore year-on-year; down from Rs 2,758 crore quarter-on-quarter.
Operating profit jumped 6% to Rs 7,519 crore from Rs 7,081 crore in the year-ago period, while operating expenditure dropped 13% to Rs 7,613 crore year-on-year.
IDBI Bank
IDBI Bank Ltd.'s net profit for the April to June quarter rose 5.4% year-on-year. The private lender reported a bottom-line of Rs 2,115 crore, compared to Rs 2,007 crore in the year-ago period. NII climbed 10% to Rs 3,486 crore from Rs 3,166 crore.
Gross NPA improved by 2 basis points quarter-on-quarter to 2.30% from 2.32%, while the net NPA deteriorated marginally by 1 basis point to 0.16% from 0.15%.The bank's provision coverage ratio stood at 99.31%, compared with 99.39% in the previous quarter. Operating profit declined 7.9% to Rs 2,168 crore from Rs 2,354 crore year-on-year.
NIM slipped to 3.61% from 4.15% in the preceding quarter and 3.68% a year ago.
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