Mumbai, July 19 -- HDFC Bank increased its provisioning buffers in the quarter ended June (Q1FY26) amid a rise in slippages from agricultural loans, leading to a marginal deterioration in asset quality. While the quarter saw stable growth in loans and deposits, margin pressure persisted - and the bank indicated this trend is likely to continue for at least another quarter.

During the period, HDFC Bank booked a one-time revenue gain of Rs.9,130 crore from the initial public offering (IPO) of its subsidiary, HDB Financial Services. Provisions stood at Rs.1,440 crore, sharply higher than the Rs.3,190 crore in the March quarter and Rs.2,600 crore in the year-ago period, and weighed on the bottomline.

"We have taken this as an opportunity to...