Mumbai, India – India’s leading private sector lenders, HDFC Bank and ICICI Bank, have kicked off the fiscal year with impressive earnings for the quarter ended June 30, 2025, showcasing robust growth and record profits. Both banking behemoths reported double-digit growth in net profits, signaling a strong performance amidst a dynamic economic environment.
HDFC Bank, the country’s largest private lender, announced a standalone net profit of a record ₹18,155 crore for the first quarter of fiscal year 2026 (Q1 FY26), a significant 12.2% increase year-on-year.[1][2] The bank’s total income surged by 18.5% to ₹99,200 crore.[1] This strong performance was bolstered by a 5.4% rise in Net Interest Income (NII) to ₹31,439 crore and a substantial one-time income from the initial public offering (IPO) of its subsidiary, HDB Financial Services.[2][3][4]
In a move that delighted investors, HDFC Bank’s board announced a 1:1 bonus share issue, a first in its history, and a special interim dividend of ₹5 per share.[1][5] The bank’s gross advances saw a growth of 6.7% to reach ₹26.53 lakh crore, while total deposits swelled by 16.2% to ₹27.64 lakh crore.[3] However, the bank’s consolidated net profit saw a marginal dip of 1.31% to ₹16,258 crore.[6] There was also a slight uptick in the gross non-performing asset (GNPA) ratio to 1.4%.[6]
Not to be outdone, ICICI Bank also reported a stellar quarter, with its standalone net profit jumping 15.4% year-on-year to ₹12,768 crore.[1][7] The bank’s consolidated net profit also saw a healthy increase of 15.9% to ₹13,558 crore.[8][9] The lender’s Net Interest Income (NII) grew by a solid 10.6% to ₹21,635 crore.[7][10]
ICICI Bank’s loan book expanded, with advances rising by 11.5% to ₹13.6 lakh crore and deposits increasing by 12.8% to ₹16 lakh crore.[1] The bank maintained a stable asset quality, with its gross NPA ratio standing at 1.67%.[9][11] In a strategic move, the board of ICICI Bank approved the acquisition of ICICI Prudential Pension Funds Management Company.[1]
Both banking giants, while celebrating their strong quarterly performance, have expressed caution regarding potential pressure on their net interest margins in the near future.[1] The impressive results from HDFC Bank and ICICI Bank are seen as a positive indicator for the Indian banking sector, reflecting healthy credit growth and a resilient economic landscape.
