- HDFC Bank's Q1 net profit rose 5% year-on-year to Rs 19,059 crore
- Net Interest Income increased 6.7% to Rs 33,534 crore year-on-year
- Provisions fell 78.8% year-on-year to Rs 3,060 crore in Q1 FY27
HDFC Bank Ltd.'s net profit for the first quarter of fiscal year 2027 rose 5% year-on-year, according to an exchange filing on Saturday.
India's largest private sector lender posted a bottom-line of Rs 19,059 crore, as against Rs 18,155 crore in the year-ago period, in-line with analysts' estimates of Rs 19,720 crore.
Net Interest Income (NII), the difference between interest earned and interest paid, rose 6.7% to Rs 33,534 crore from Rs 31,438 crore.
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Provisions declined sharply on a year-on-year basis by 78.8% to Rs 3,060 crore from Rs 14,441 crore. However they rose sequentially 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 took a hit and declined 21.2% to Rs 28,168 crore from Rs 35,734 crore.Net interest margin (NIM) on total assets came in at 3.26%, slightly below analysts' estimate of 3.32%, while NIM on interest-earning assets came in at 3.40%.
Speaking during the post-earnings analyst call, HDFC Bank CEO said the bank had successfully navigated several challenges over the past four months, with employees focused on strengthening the franchise despite a difficult operating environment. He added that the appointment of the new chairman has removed the uncertainty surrounding the leadership transition.
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HDFC Bank Q1FY27 (YoY)
- Net profit up 5% to Rs 19,059 crore from Rs 18,155 crore (Bloomberg estimate: Rs 19,720 crore)
- Net interest income up 6.7% to Rs 33,534 crore from Rs 31,438 crore (Bloomberg estimate: Rs 34,257 crore)
- Provisions at Rs 3,060 crore versus Rs 14,441 crore
Asset Quality (QoQ)
- Gross NPA up 2 basis points to 1.17% from 1.15% (Bloomberg estimate: 1.15%)
- Net NPA up 3 basis points to 0.41% from 0.38% (Bloomberg estimate: 0.38%)
- Provisions at Rs 3,060 crore versus Rs 2,610 crore
HDFC Bank Share Price
HDFC Bank's stock closed 1.40% higher at Rs 819.60 apiece on the NSE on Friday. This compared to a 1.09% advance in the benchmark Nifty index.
The share price has fallen 17.31% year-to-date and 58.75% in the last 12 months.
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