HDFC Bank Q1 FY26 Profit:India’s leading private banks reported a strong start to FY26, with HDFC Bank posting a ₹18,155 crore net profit—up 12.24% YoY—alongside its first-ever bonus share issue and ₹5 dividend. Meanwhile, Yes Bank saw its Q1 profit surge 59% YoY to ₹801 crore, backed by stable asset quality and improved income performance.
India’s leading private lender HDFC Bank kicked off the FY26 earnings season with a robust start, reporting a 12.24% year-on-year surge in standalone net profit, reaching ₹18,155 crore in Q1. The bank also declared a special interim dividend of ₹5 per share and surprised investors with its first-ever bonus share issuance, marking a historic milestone. Meanwhile, Yes Bank posted steady gains in profitability, driven by a significant uptick in net interest margins (NIMs) and a notable rise in other income, even as slippages showed a marginal increase.
HDFC Bank Q1 FY26 Profit: Operational Gains Steady Amid Provision Surge; HDB IPO Buzz Grows, CASA Ratio Slips
HDFC Bank’s Q1 FY26 operations remained resilient and profit-generating, even as the lender set aside higher-than-usual provisions amid its conservative, forward-looking approach. The operating profit climbed to ₹35,734 crore, a sign of underlying business strength. However, provisions shot up to ₹14,442 crore, including a hefty ₹9,000 crore in floating reserves and another ₹1,700 crore in contingency buffers—highlighting the bank’s proactive stance in uncertain macroeconomic conditions.
As of June 30, 2025, the bank’s gross advances reached ₹26.53 lakh crore, registering a 6.7% increase year-on-year, while total deposits expanded by 16.2% to ₹27.64 lakh crore. The CASA ratio, however, dropped to 33.9% from 38.2% in the same quarter last year—pointing to a shift in depositor preferences. Savings accounts stood at ₹6.39 lakh crore, and current accounts at ₹2.98 lakh crore, indicating a tighter liquidity environment.
A major boost came from the much-anticipated IPO of its subsidiary, HDB Financial Services, which unlocked ₹9,128 crore in pre-tax gains for the parent. This windfall not only lifted quarterly profits but also reaffirmed the group’s agile capital strategy and readiness to leverage market opportunities.
Yes Bank Q1 Profit Jumps 59% YoY to ₹801 Cr; NII Grows Steadily, Asset Quality Stable Despite Mild Slippages
Yes Bank delivered a strong set of numbers in Q1 FY26, with net profit rising 59% year-on-year to ₹801 crore, reflecting a clear improvement in core banking performance and profitability metrics. The lender also saw a 5.8% increase in Net Interest Income (NII), reaching ₹2,370 crore, supported by steady loan growth and a consistent interest rate spread.
On a standalone basis, net profit grew to ₹808.6 crore, compared to ₹516 crore in the corresponding period last year. A major contributor to this bottom-line boost was a sharp rise in other income, which climbed to ₹1,824 crore from ₹1,270 crore—a sign of improved fee-based revenue streams and diversified income generation.
In terms of asset quality, Yes Bank maintained stability. Both Gross NPA and Net NPA ratios remained unchanged at 1.6% and 0.3%, respectively. Provisions during the quarter eased to ₹284 crore, down from ₹317 crore in the March quarter, suggesting better credit cost management.
While net interest margins (NIMs) remained steady at 2.5%, they showed a slight improvement of 10 basis points from Q1 last year, reflecting incremental efficiency gains. However, slippages inched up to ₹1,458 crore, compared to ₹1,223 crore in the previous quarter. Encouragingly, recoveries and upgrades stood strong at ₹1,170 crore, helping balance asset pressure and maintain overall portfolio health.
Private Sector Banks Signal Resilience and Forward Momentum in Q1 FY26
The Q1 FY26 earnings from both HDFC Bank and Yes Bank paint a picture of cautious optimism within India’s private banking landscape. While HDFC Bank continues to demonstrate scale-backed stability and capital-market savvy—reflected in strong operational earnings and a one-time boost from its HDB IPO—Yes Bank’s steady rise in profitability, improved income mix, and controlled asset stress reflect its measured comeback. Margins remained broadly intact across both lenders, while proactive provisioning and healthy advances signal a forward-looking posture. These early numbers suggest that despite liquidity shifts and global uncertainty, India’s private lenders are building on their balance sheet strength and recalibrating for sustainable growth in FY26.
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