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Key Points

HDFC Bank reported a 13% drop in quarterly net profit but still announced a Rs 5 special dividend. The bank also approved a 1:1 bonus share issue for shareholders. Interest income grew 6% despite rising expenses. Asset quality saw a marginal decline with gross NPA at 1.40%.

Key Points: HDFC Bank Q1 Profit Dips 13% Announces Rs 5 Dividend and Bonus Shares

  • HDFC Bank Q1 net profit falls 13% sequentially
  • Announces Rs 5 per share special dividend
  • Approves 1:1 bonus share issuance
  • Gross NPA rises slightly to 1.40%
2 min read

HDFC Bank clocks 13 pc sequential drop in Q1 net profit, announces Rs 5 special dividend

HDFC Bank reports 13% quarterly profit drop but declares Rs 5 special dividend and 1:1 bonus shares for shareholders.

"The Special Interim Dividend shall be paid to the eligible Members on Monday, August 11, 2025 – HDFC Bank"

New Delhi, July 19

HDFC Bank on Saturday reported a 13 per cent sequential drop in net profit (unaudited consolidated) for Q1 FY26 at 16,257.91 crore, down from Rs 18,834.88 crore in the previous quarter that ended on March 31.

On the year-on-year basis, India’s largest private lending bank registered a marginal dip of 1.3 per cent in net profit from 16,474.85 crore it clocked in Q1 FY25 (after accounting for minority interest).

The bank earned an interest income of Rs 77,470 crore, which was up 6 per cent from Rs 73,033 crore reported in the corresponding quarter of the last financial year. HDFC Bank's interest expenses reached Rs 46,032.23 crore during the review period, compared to Rs 43,196 crore in the previous year, marking a rise of 6.6 per cent.

According to the exchange filing, the net interest income (the difference between interest earned and interest expended) for the quarter ending June 30, 2025, increased by 5.4 per cent to Rs 31,439 crore, up from Rs 29,839 crore for the quarter ending June 30, 2024.

HDFC Bank announced issuance of first-ever bonus shares in the proportion of 1:1 which means one equity share for every 1 fully paid-up equity share, each held by the members of the bank as on the record date of August 27.

The bank also announced a special interim dividend of Rs 5 per equity share for FY 2025-26. “The Special Interim Divided shall be paid to the eligible Members on Monday, August 11, 2025,” the HDFC bank said in its stock exchange filing.

The gross non-performing asset (GNPA) ratio stood at 1.40 per cent, while the net NPA ratio was 0.47 per cent as of June 30, both slightly higher than the year-ago levels.

The bank gained from the recent IPO of its subsidiary HDB Financial Services, booking a pre-tax gain of Rs 9,128 crore from the offer for sale of shares.

- IANS

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Reader Comments

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Priya S
Worried about the rising NPAs though. 1.4% may seem small but the upward trend is concerning. Hope management addresses this in their next earnings call. Otherwise, HDFC remains my most trusted banking stock.
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Arjun K
The HDB Financial IPO gain saved their quarter! Without that ₹9,128 crore, results would've looked much worse. Clever timing by the management to offset the profit decline.
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Sarah B
As an NRI investor, I appreciate the transparency in HDFC's reporting. The 5.4% NII growth shows core banking operations remain strong. The bonus issue will help improve liquidity - smart move!
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Vikram M
Interest expenses growing faster than income (6.6% vs 6%) is a red flag no? RBI needs to look at deposit rates - common people are suffering while banks make money.
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Kavya N
My father has held HDFC shares since 2005. The bonus shares and dividend will make his retirement fund grow even more! 💰 This is why we trust Indian private banks over PSUs.

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