HDFC Bank reported a 5 per cent year-on-year (y-o-y) increase in standalone net profit for the first quarter (Q1FY27), reaching ₹19,060 crore, with the bottom line being supported by an increase in net interest income and sharply lower provisions.

India’s largest private sector bank had reported a net profit of ₹18,155 crore in the year ago (Q1FY26) period.

The bank’s net profit is higher by about 10 per cent in the reporting quarter if the year ago period net profit is adjusted for transaction gains from a partial divestment through an offer for sale in the IPO of HDB Financial Services, certain provisions and tax credit.

Referring to former Finance Secretary Rajiv Kumar joining the Bank as Part-Time Chairman, Sashidhar Jagdishan, MD & CEO, in his introductory remarks at a media conference, observed that the appointment brings a sense of stability and sends a clear signal that the bank is seeking to minimise uncertainties in a very short-time period.

On the road ahead for the bank, Sashidhar emphasised that over the next couple of years, the bank will be able to realise the benefits of all the investments in distribution made over the past five to six years.

“(On) advances, I think, we are on the cusp of pressing the pedal. Opportunities do exist, and there is a fair amount of buoyancy in what we are doing at this stage. The environment continues to be very healthy.”

On mobilisation of fresh FCNR (B)/ Foreign Currency Non-Resident (Bank) deposits under RBI’s concessional swap facility, the Bank’s chief noted that liquidity augmentation through this route is an opportunity the bank is focusing on.

“A large part of our work (beginning last month) was towards building necessary product approvals and documentation, both internally and with counterparties as well. I think over the next couple of months, we should see the momentum picking up,” he said.

Sashidhar underscored that the Bank has already raised about $750 million to provide leverage to NRIs for placing FCNR (B) deposits with the Bank Moreover, it also has plans to raise more funds to be able to provide own leverage to its best set of customers.

To a specific question on Sashidhar’s reappointment for a third-term, Kaizad M Bharucha, Deputy Managing Director, said: “The new chairman has just taken over. The GNRC (Governance, Nomination and Remuneration Committee) and the board are seized of the matter... As soon as they conclude (the process), we will come out and inform all of you people and the exchanges as to the outcome of the exercise.”

In the reporting quarter, HDFC Bank’s net interest income (difference between interest earned and interest expended) was up 7 per cent y-o-y at ₹33,534 crore (₹31,438 crore in the year ago period).

However, total non-interest income, including Fees & Commissions, FX & Derivative income, Net trading & MTM income and Other Miscellaneous Income, declined about 41 per cent y-o-y to ₹12,822 crore (₹21,730 crore).

Total non-interest income was buoyed in the year ago quarter (Q1FY26) by gains from a partial divestment through an offer for sale in the IPO of the Bank’s subsidiary HDB Financial Services Ltd.

Provisions saw a sharp 79 per cent y-o-y decline to ₹3,060 crore (₹14,440 crore).

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