HDFC Bank (HDFCBANK) investor relations material

Executive summary

• Leadership transition brought stability, with Rajiv Kumar appointed as Chairman, and management focused on growth and digital transformation.

• Net interest income for Q1 FY27 grew 6.7% year-over-year to ₹335.3 billion, with net interest margin at 3.26%.

• Profit after tax for the quarter was ₹19,060 crore, up 5.0% year-over-year, and up 9.8% when adjusted for one-offs; consolidated PAT reached ₹19,244.7 crore.

• Asset quality remained stable with GNPA at 1.17% and net NPA at 0.41%.

• Investments in distribution, technology, and ESG initiatives are driving productivity and operational efficiencies.

Financial highlights

• Gross advances grew 15.4% year-over-year to ₹30,608 billion; deposits rose 14.7% to ₹31,708 billion.

• Net interest income grew 6.7% YoY to ₹335.3 bn; non-interest income declined 41% YoY to ₹128.2 bn.

• Operating profit before provisions was ₹28,168 crore (standalone), with provisions and contingencies at ₹3,060 crore.

• Cost-to-income ratio stood at 39.2% for the quarter.

• CASA ratio declined post-merger to 32-34%, with a focus on regaining pre-merger levels.

Outlook and guidance

• Management expects healthy growth in advances, especially in MSME and corporate segments, supported by strong credit demand and government schemes.

• Margin improvement is anticipated as cost of funds benefits play out and asset mix shifts towards higher retail exposure.

• CASA and deposit mobilization are strategic priorities, leveraging technology for efficiency.

• Targeting carbon neutrality by FY32 and increased sustainable finance portfolio.

• Management remains committed to corporate governance and regulatory compliance.