**HDFC Bank Q1 FY26 Results: Profits Rise, Margins Under Pressure, Cautious Provisions Ahead of Uncertainties**

## **HDFC Bank Q1 FY26 Results: Strong Profit, Higher Provisions Reflect Caution** HDFC Bank reported a **12.2% YoY rise in net profit to ₹18,160 crore** for Q1 FY26, supported by a **one-time ₹9,130 crore gain from the IPO of subsidiary HDB Financial Services**. **Net interest income (NII)** grew **5.4% YoY to ₹31,440 crore**, while **core margins (NIM) softened to 3.35%** due to rising deposit costs. The bank’s **total revenue stood at ₹53,170 crore**, aided by treasury gains. However, management adopted a **cautious approach, making provisions of ₹14,440 crore** (including ₹9,000 crore floating provisions) to strengthen the balance sheet. Loan growth remained healthy at **6.7% YoY**, with **retail loans up 8.1%** and **SME loans up 17.1%**, while **corporate loans showed slower growth at 1.7%**. **Deposits grew 16.2% YoY** to ₹27.6 lakh crore, but the **CASA ratio declined to 33.9%**. **Asset quality remains stable**, with **Gross NPA at 1.40%** and **Net NPA at 0.47%**. The bank announced a **1:1 bonus issue** and a **₹5 special interim dividend**, reinforcing shareholder confidence. **Disclaimer:** This post is for informational purposes only, not investment advice. Consult your advisor before making financial decisions.