Event Type: Q1 FY27 Earnings Conference Call with analysts and investors

Date and Time: July 15, 2026, 18:30hrs IST

Purpose: Discussion of Unaudited Financial Results for the quarter ended June 30, 2026

Management Participants:

  • Mr. G Ramesh – MD & CEO
  • Mr. Jaykumar Shah – CFO
  • Mr. Vishal Patel – Head Investor Relations

Availability of Materials: The audio recording of the call was made available on the company website shortly after the call ended. The transcript was filed with stock exchanges and made available on the company website at https://www.hdbfs.com/investors

Compliance Statement: The conference call was only for analysts and investors and not for media. The disclaimer stated that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially.

Financial Period Discussed: Q1 FY27 (quarter ended June 30, 2026)

Key Financial Highlights:

  • Profit after tax: ₹785 crores (38.3% YoY growth, 4.6% QoQ growth) - highest ever quarterly profit
  • Gross loan book: ₹1,21,846 crores (11.3% YoY growth, 2.8% sequential growth)
  • Disbursements: ₹17,629 crores (16.2% YoY growth)
  • Gross Stage 3: 2.34% (vs 2.44% as of March 31, 2026 and 2.56% as of June 30, 2025)
  • Provision coverage: 55.73%
  • Net interest income: ₹2,509 crores (19.9% YoY growth, 4.6% QoQ growth)
  • Net interest margin: 8.35% (vs 7.74% in Q1FY26 and 8.23% in Q4FY26)
  • Cost to income ratio: 39.9% (vs 42.7% in Q1FY26 and 39.5% in Q4FY26)
  • PPOP: ₹1,726 crores (24.3% YoY growth, 3% QoQ growth)
  • Credit cost: 2.32% (vs 2.35% previous quarter)
  • ROA (annualized): 2.5%
  • ROE (annualized): 15%
  • EPS: ₹9.5
  • Book value per share: ₹256.7
  • CRAR: 21.29%
  • Secured loans: 73.9% of gross loan book
  • Customer franchise: 23.9 million (18.6% YoY growth, 4.1% sequential growth)

Segment-wise Performance:

Enterprise Lending:

  • Disbursements grew 14% YoY
  • LAP+ EBL (mortgage book) expanded 13.2% YoY
  • Gold loan disbursements and book doubled over last year
  • 500+ branches enabled for gold loans
  • Unsecured Business Loans disbursements accelerated in latter part of quarter
  • Portfolio quality and collections healthy

Asset Finance:

  • Commercial Vehicles book grew 10% YoY
  • Construction Equipment book grew 8% YoY
  • Stage 3 improved sequentially
  • Focus on used CV and selective new CV products

Consumer Finance:

  • Book grew 7.5% QoQ and 21% YoY
  • Consumer durables book expanded over 50% YoY
  • Auto loan book grew 21% YoY
  • Presence in 1,200+ cities with 1.6 lakh+ retail distribution touchpoints
  • Partnerships with 150+ manufacturers

Strategic Initiatives:

  • AI transformation initiative "Shikhar" announced to manage customer life cycle journey
  • Focus on transforming customer experience from transaction journey to life cycle journey
  • Using AI for onboarding, faster processing, intelligent customer servicing, collection automation, and predictive hyper-personalized offerings
  • CRISIL assigned "Strong" ESG rating with score of 68

Forward-looking Statements:

  • Expect positive momentum to continue in Enterprise Lending
  • Anticipate upward trajectory in LAP+ EBL to continue
  • Gold loans positioned for continued traction
  • Unsecured Business Loans positioned for improvement going forward
  • Expect momentum to continue in Consumer Finance segment
  • Focused approach in Asset Finance to drive growth in desired product portfolios
  • Targeting steady-state credit cost of 2.3%
  • Growth expected to accelerate from Q2/Q3 FY27 onwards

Q&A Session Key Points

Asset Finance Outlook:

  • Management expressed confidence in growth acceleration in coming quarters
  • Volumes increased in desired products, with May being highest ever volume for many products
  • Asset quality improvement seen across segments

Growth Strategy:

  • Focus on risk-adjusted returns across all products
  • Reduced exposure to high-value low-return products
  • Gold loan capacity to double from current levels
  • Unsecured Business Loans expected to turn positive from Q2 onwards

Asset Quality:

  • Q1 typically seasonally weak quarter, but improvement seen
  • Collections initiatives and AI implementation contributing to better asset quality
  • Monitoring monsoon/El Nino impact as key monitorable

Margin Outlook:

  • Target to maintain 8%+ NIM and 2.5% ROA
  • Mix changes may affect gross yield but offset by other income
  • Cost of funds expected to remain range-bound

Macro Environment:

  • Domestic economic activity showing resilience
  • RBI GDP growth expectation moderated to 6.6% for FY27
  • Inflation projections increased to 5.1%
  • Repo rate unchanged with neutral stance
  • West Asia conflict and El Nino-related risks remain monitorables

Additional Notes Section

Attachments: The regulatory filing included the full transcript of the earnings call as an enclosure.

Financial Data Disclosure: The announcement contained extensive financial data for Q1 FY27 including profit figures, loan book size, asset quality metrics, and segment-wise performance details.