HDFC Bank Q1 Results: Net Profit Rises 12.2% YoY To Rs 18,155 Cr; 1:1 Bonus Shares & Rs. 5 Dividend Declared

HDFC Bank said on Saturday that its net profit for the quarter that ended on June 30, 2025 (Q1FY26) grew by a robust 12.24% YoY. The profit after tax increased to Rs 18,155.21 crore from Rs 16,174.75 crore in the same period the previous year. The strong performance was fueled by a noticeable rise in non-interest income and a healthy growth in net interest income.

Net interest income increased from Rs 29,840 crore in Q1FY25 to Rs 31,440 crore, a 5.4% year-on-year growth. At 3.35% of total assets, the core net interest margin was marginally lower than the 3.46% it was in the prior quarter. According to HDFC Bank, its operating expenses rose from Rs 16,620 crore to Rs 17,430 crore.

The bank has Rs 14,441 crore in total provisions and contingencies, which was significantly more than the Rs 2,600 crore it had in Q1FY25.

A special interim dividend of Rs. 5 per equity share of Re. 1/- each fully paid up (i.e. 500%), for FY 2025-26 has been declared the Board of Directors.

"The record date for determining the eligibility of Members entitled to receive the said Special Interim Dividend is Friday, July 25, 2025. The Special Interim Dividend shall be paid to the eligible Members on Monday, August 11, 2025," said HDFC Bank in a stock exchange filing.

For the first time in history, HDFC Bank's Board also approved the issuance of bonus equity shares in the proportion of 1:1 i.e. 1 equity share of Re. 1/- each for every 1 fully paid-up equity share of Re. 1/- each held by the members of the bank as of the record date.

"The record date for determining the entitlement of the Members of the Bank to receive bonus equity shares is Wednesday, August 27, 2025," HDFC Bank confirmed in a regulatory filing today.

The Securities Premium Account, which as of June 30, 2025, has a balance of Rs 13,63,15,35,97,062, is to be capitalized in order to carry out this bonus issuance. The ultimate figure may change based on stock option exercises up to the record date, but the bank will issue around 76,67,91,364 bonus equity shares amounting to Rs 766.79 crore.

In order to accommodate the bonus issuance, the authorized share capital was increased from Rs 1,190.61 crore to Rs 2,000 crore, while the pre-bonus paid-up share capital was Rs 766.79 crore and would double to Rs 1,533.58 crore after the bonus. The bonus shares shall be credited by September 18, 2025, at the latest, two months from the Board's approval date.

The total balance sheet size of HDFC Bank jumped from Rs 35,67,250 crore on June 30, 2024, to Rs 39,54,100 crore on June 30, 2025. The average deposits for Q1FY26 were Rs 26,57,600 crore, which represented a sequential rise of 5.1% over Rs 25,28,000 crore in Q4FY25 and a growth of 16.4% over Rs 22,83,100 crore in Q1FY25.

According to HDFC Bank, its average CASA deposits were Rs 8,604,000 crore, up 3.8% from Rs 8,289,000 crore in the prior quarter and 6.1% YoY from Rs 8,106,000 crore.

As of June 30, 2025, the bank's total deposits for the quarter under review were Rs 27,64,100 crore, a 16.2% rise over the year-ago period. Time deposits were Rs 18,27,100 crore, up 20.6% YoY, while savings account deposits totalled Rs 6,390,000 crore and current account deposits totalled Rs 2,980,000 crore. As a result, CASA deposits accounted for 33.9% of total deposits.

At Rs 27,42,300 crore, the average advances under management increased 8.3% YoY and 1.7% sequentially. With gross advances of Rs 26,53,200 crore as of June 30, 2025, there had been a 6.7% rise over the same period the previous year.

According to Basel III criteria, HDFC Bank reported a Capital Adequacy Ratio (CAR) of 19.88% as of June 30, 2025. The bank's strong capital position was demonstrated by the CET1 (Common Equity Tier 1) capital, which was significantly higher than the regulatory standard.

The quarter that ended on June 30, 2025, saw HDFC Bank maintain its excellent asset quality. The bank has 9,499 branches and 21,251 ATMs spread throughout 4,153 cities and towns as of June 30, 2025, compared to 8,851 branches and 21,163 ATMs spread across 4,081 cities and towns as of June 30, 2024.

In semi-urban and rural regions, 51% of bank branches are located. The bank also has 15,322 business correspondents, most of which are staffed by Common Service Centers (CSC). Compared to 2,13,069 on June 30, 2024, there were 2, 18,822 employees on June 30, 2025.