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Floating provision is the amount of money that the bank sets aside above the minimum regulatory requirement to cover from potential losses from a bad loan situation. This allows lenders to use the same without significantly impacting their capital position if the need arises.

Gross NPA addition of ₹6,245 crore in Q1, compared to an addition of ₹5,142 crore during the March quarter.

Retail loan portfolio for the quarter grew by 6.9% from the same quarter last year and 0.5% on a sequential basis. Retail loans comprised of 52.2% of ICICI Bank’s portfolio. Including non-fund outstanding, the retail portfolio was 43.2% of the overall loan book.

Domestic corporate portfolio grew by 7.5% from last year but fell 7.5% sequentially.

The Bank’s credit performance across all segments continues to remain steady, in a credit environment that remains benign. The Bank has considered this as an opportune stage to enhance its floating provisions, which are not specific to any portfolio, nor meant for any specific anticipated risks, but act as a countercyclical buffer for making the balance sheet more resilient. Accordingly, the bank has made a floating provision of ₹9,000 crore and additional contingent provision of ₹1,700 crore during the quarter.

Total deposits for the quarter grew by 11.2% on a year-on-year basis to ₹15.33 lakh crore, the lender said in its investor presentation.

Domestic loan portfolio grew by 12% from last year to ₹13.31 lakh crore.

Provision Coverage Ratio for NPAs stood at 75.3% at the end of the quarter.

HDFC Bank’s provisions saw a sharp jump to ₹14,441 crore from ₹3,193 crore in the March quarter.

The lender highlighted that it had created a floating provision of ₹9,000 crore during the quarter.

Adjusted for that, provisions would have increased to ₹5,441 crore from ₹3,193 crore.

Asset quality remained stable with gross NPA remaining unchanged from the March quarter at 1.67% and Net NPA at 0.41% from 0.39% in the March quarter.

Provisions for the quarter also saw an increase to ₹1,814 crore from ₹890 crore during the March quarter.

Net Interest Income, or core income earned by the lender stood at ₹21,635 crore, which was 10.6% higher than the same quarter last year, and higher than the CNBC-TV18 poll of ₹20,923 crore.

ICICI Bank reported net profit of ₹12,768 crore during the quarter, which was 15.4% higher than the year-ago quarter and also higher than the CNBC-TV18 pol of ₹11,747 crore.

HDFC Bank’s board has approved a bonus issue of 1:1, which means shareholders will be eligible to receive one bonus share for every one held.

Record date is yet to be determined.

The board has also approved a special dividend of ₹5 per share.

– Net Interest Income up 5.4% from last year to ₹31,438 crore

– Net profit up 12.2% to ₹18,155 crore

– Higher other income contributes to profit jump

– Other income at over ₹20,000 crore from over ₹10,000 crore last year

– Gross NPA at 1.4% from 1.33% last quarter

– Net NPA at 0.47% from 0.43% last quarter

– Commentary on Margins

– Improvement in loan growth trajectory

– Comments on asset quality

HDFC Bank is set to reward its shareholders along with its June quarter results.

The board will be considering a bonus issue of shares for its shareholders. Alongside that, it will also be considering a special dividend.

This comes after HDFC Bank received ₹10,000 crore as part of its partial stake sale in its non-bank lending arm HDB Financial Services, during the latter’s IPO.

52 analysts have coverage on ICICI Bank.

49 of them have a “buy” recommendation

Three others have a “hold” rating.

No analyst has a “sell” rating on the stock either.

48 analysts have coverage on HDFC Bank.

44 of them have a “buy” recommendation.

The four others, have a “hold” rating.

– HDFC Bank’s Net Interest Income had grown by 10.3% from last year to ₹32,065 crore

– Net profit for the quarter had increased by 6.7% year-on-year to 17,616 crore

– Provisions were down year-on-year but saw a marginal rise sequentially

– ICICI Bank’s deposits had grown by 14% from last year to ₹16.1 lakh crore

– Loan growth during the quarter had increased by 13.3% year-on-year to ₹13.4 lakh crore

– Asset quality had improved on a sequential basis

– Mgt expects favourable policy action (esp lower rates) to aid consumption activity & credit demand in 2HFY26.

– NIMs will have near-term correction & rise in FY27; asset quality is holding up well

– See recent allegations on bank/CEO as a non-event, albeit noisy.

– Remains top pick in the sector

– Maintain buy rating; price target of ₹2,380

– Prefer large private banks, selective risk-reward for NBFCs.

– Top picks: HDFC Bank, Axis Bank, AB CAP, PFC, Shriram Finance, LIC

– Asset quality should remain strong except for seasonal agriculture slippages

– Corporate recoveries may remain weak this quarter – impacting Credit cost

– Slippages/credit cost may increase ~20 bps QoQ to 1.9%

– Commentary on Margins

– Improvement in loan growth trajectory

– Comments on asset quality

– Loan book growth outlook

– Management had earlier said that growth will be in-line with the system in FY26 and ahead of the system in FY27

– Commentary on NIMs

– Aims for Credit-Deposit Ratio to gradually go down to 85% to 90%

– Shares of HDFC Bank have gained 10% so far this year and are 3.5% away from their all-time high level of ₹2,027.

– On the other hand, ICICI Bank shares are up 11% so far this year and are also 3% away from their all-time high level of ₹1,471.

– Q1 is usually weak for Agri loans

– As a result, slippages for the lender may go up this quarter

– Credit costs expected to remain stable on a sequential basis at 0.5%

– Most of the 50 basis points rate cut is likely to be passed on and the remaining impact could be seen in the second quarter

– However, NIMs are likely to decline between 18 bps to 20 bps to 4.2% to 4.25% range

– Opex growth could be higher but treasury income may support Pre-Provisioning Operating Profit

– Advances growth seen 11.9% higher from last year and 2% from March quarter at ₹13.68 lakh crore

– Deposits growth seen 13.5% higher year-on-year to ₹16.19 lakh crore

– Net Interest Income growth seen at 7% to ₹20,923 crore with slowdown due to RBI rate cuts

– Net Interest Income seen 5% higher at ₹31,384 crore

– However, on a sequential basis, Net Interest Income is likely to decline by 2%

– Net profit may see a growth of 6% from last year to ₹17,067 crore, but sequential fall anticipated

– All numbers compared year-on-year and are as per a CNBC-TV18 poll

The board will be considering a bonus issue of shares for its shareholders. Alongside that, it will also be considering a special dividend.

This comes after HDFC Bank received ₹10,000 crore as part of its partial stake sale in its non-bank lending arm HDB Financial Services, during the latter’s IPO.

India’s two largest private lenders, HDFC Bank Ltd. and ICICI Bank Ltd. are set to report results later today.

While HDFC Bank has already shared some of its parameters in terms of business performance in its quarterly update, ICICI Bank will be sharing the same along with its numbers today.

Good Morning!

Welcome to CNBC-TV18’s live coverage of HDFC Bank and ICICI Bank’s quarterly results.

Two Nifty 50 heavyweights and India’s largest private lenders will be reporting results in a few hours from now.

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