HDFC Life Insurance in India reported a 12% increase in net profit for the first quarter, driven by an increase in premium collection, particularly from policy renewals.
Over the three months ending June 30, the insurance company's net profit reached 6.11 billion rupees (equivalent to 63.47 million US dollars), compared to 5.46 billion rupees the previous year.
The recurring premium income increased by approximately 14%, amounting to 165.48 billion rupees. Meanwhile, first-year premiums for new policies rose by almost 6%, while renewal premiums increased by almost 19%.
Analysts had predicted that HDFC Life's new business growth would lag behind competitors due to moderate sales through the main distribution channel of HDFC Bank. Nevertheless, strong growth in renewal premiums supported the profit increase.
Earlier the same day, ICICI Prudential Life Insurance announced a 27.8% rise in its first-quarter profit.
Private insurance companies HDFC Life Insurance and ICICI Prudential Life Insurance reported double-digit profit growth in the first quarter of the fiscal year 2026-27 (April-June quarter). This growth was driven by an increase in premium receipts, growth in investment income, and sustained business development.
HDFC Life increased its net profit by 11.9% year-on-year, reaching 611 crore rupees. Meanwhile, ICICI Pru recorded a stronger profit growth of 27.8% year-on-year, amounting to 386.2 crore rupees.
HDFC Life's investment income grew by 14.1% year-on-year, reaching 16,653 crore rupees for the quarter. ICICI Pru's investment income increased by 11.1% year-on-year, totaling 18,500 crore rupees. Premium income also remained high: HDFC Life's net premium income grew by 14.4% year-on-year to 16,548 crore rupees, while ICICI Pru's grew by 14.7% to 9,749 crore rupees.
HDFC Life's Annual Premium Equivalent (APE) increased by 9% year-on-year to 3,515 crore rupees. The Value of New Business (VNB) grew by 8.7% to 879 crore rupees from 809 crore rupees the previous year, although the VNB margin slightly decreased to 25% from 25.1%. The company's operating expenses rose by 18.8% year-on-year, reaching 3,871 crore rupees, with the rise in commission expenses by 20% to 2,101 crore rupees being the main factor.
HDFC Life's solvency ratio decreased to 185% as of June 30, from 192% the previous year. As for ICICI Pru, its APE grew by 14.6% year-on-year to 2,136 crore rupees. The company's VNB increased by 25% to 571 crore rupees compared to 457 crore rupees in the quarter a year ago, and the VNB margin improved to 26.7% from 24.5%. ICICI Pru's expenses rose by 17.9% year-on-year to 2,230 crore rupees, while commission expenses increased by only 3% to 1,014 crore rupees. ICICI Pru's solvency ratio improved to 225.4% as of June 30, compared to 212.3% the previous year.
Both insurance companies continued to diversify their sales channels, reducing dependence on the bancassurance channel. In HDFC Life, the bancassurance channel accounted for 57% of individual APE during the quarter, which is lower than 60% the previous year. Meanwhile, the agency channel contribution increased to 18% from 15%, and direct channels to 10% from 9%. Vibha Padalkar, Managing Director and CEO of HDFC Life Insurance, noted that in Q1 FY27, proprietary channels, including agency and non-bank alliances, grew by 17%, outpacing the industry, while business through the bancassurance channel showed moderate growth, leading to a 7% rise in individual APE. She added that there is an encouraging improvement in the company's share in partner banks, and further normalization is expected in the coming months.
Anup Bagchi, CEO of ICICI Prudential Life Insurance, emphasized that protection remains a key focus area, noting strong growth in retail protection business of 60.4% year-on-year in Q1 FY27. This growth was stimulated by the exemption of Goods and Services Tax (GST) for protection products and various initiatives by the company itself. This marks the third consecutive quarter where retail protection growth exceeded 40% following GST reforms.
ICICI Pru's share in the bancassurance channel of total APE decreased to 27% from 30% the previous year. Meanwhile, the contribution of partnership distribution increased to 15% from 13%, and group distribution grew to 23% from 19%. After the announcement of results, ICICI Pru shares rose by 4.1% and closed at 524.8 rupees on BSE, while HDFC Life gained 2.4% and finished at 568.5 rupees.
Jana Small Finance Bank reported a significant increase in net profit for the first quarter of fiscal year 27. During the reporting period from April to June, the bank demonstrated a 52% growth in net profit compared to the same period last year, reaching 155 crore rupees. This success was attributed to a strong increase in net interest income, active growth in the loan portfolio, and expansion of the secured loan portfolio.
Net Interest Income (NII) increased by 33.4% year-on-year, amounting to 782 crore rupees. Meanwhile, other incomes slightly decreased, falling to 215 crore rupees from 235 crore rupees the previous year. The bank's Net Interest Margin (NIM) consistently rose by 30 basis points, reaching 7.5% in the first quarter of FY27.
Provisions and unforeseen expenses slightly decreased to 178 crore rupees in Q1 FY27, compared to 187 crore rupees the previous year and 195 crore rupees in Q4 FY26. Write-offs also decreased sequentially by 13%, totaling 291 crore rupees.
The volume of loans disbursed increased by 26% year-on-year and 4% sequentially, reaching 37,612 crore rupees. The secured portfolio grew by 29% year-on-year and 4% sequentially. The gold loan segment showed the fastest growth, increasing by 113% year-on-year, followed by auto loans, which grew by 78%. Growth in the affordable housing segment reached 29%, and MSME loans grew by 27%. Conversely, the growth of the Loan Against Property (LAP) microloan portfolio slowed to 5% year-on-year.
Currently, the secured portfolio accounts for almost 73% of the total outstanding loans. Meanwhile, the unsecured portfolio grew by 18% year-on-year and 3% sequentially, reaching 10,240 crore rupees. Deposits, in turn, increased by 22% year-on-year, totaling 35,756 crore rupees.
For fiscal year 27, the bank forecasts asset growth of 19–21%, deposit growth of 23–25%, and profit increase of over 80%. The bank also clarified that Jana Holdings and Jana Capital, the current promoters, were classified as being in technical default on the payments of Non-Convertible Debentures (NCD) after extending the maturity of these instruments by six months to provide additional time to sell their stake.
Jana Holdings' stake in the bank decreased from a peak of 44% to 16.9%. Both Jana Holdings and Jana Capital plan to seek approval for de-promoterization from the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) once their stake falls below 9.99%. It was noted that Jana Holdings has not injected capital into the bank since June 2022, has no representation on the bank's board of directors, and there are no cross-holdings between the entities. The bank also assured that there is no cross-default link between the debt of Jana Small Finance Bank and the debt of Jana Holdings or Jana Capital. Although India Ratings placed the bank under 'watch' following actions against Jana Holdings and Jana Capital, the bank stated that operations continue as usual. Meanwhile, CARE Ratings confirmed the bank's rating without any changes.
HDFC Bank, India's largest private lender, has released a preliminary business report indicating that gross loans grew by 15.4% year-over-year (YoY) and deposits increased by 14.7% during the June quarter (Q1FY27).
As of June 30, 2026, the bank's gross loans reached approximately INR 30.61 trillion, compared to INR 26.53 trillion a year earlier. On a year-over-year basis, gross loans increased by 3.4% compared to the figure of INR 29.60 trillion at the end of March 2026.
Assets Under Management (AUM), which include interbank certificates, discounted bills, and securitization/asset transfers, grew by 12.4% YoY, totaling INR 31.27 trillion versus INR 27.82 trillion a year ago. The sequential increase in AUM was 2.3% compared to INR 30.57 trillion at the end of March.
The average AUM for the quarter reached INR 30.39 trillion, which is 10.8% higher than in the same quarter last year and 2.5% more than in the March quarter. Regarding liabilities, deposits at the end of the period grew by 14.7% YoY, reaching INR 31.71 trillion compared to INR 27.64 trillion a year ago. The sequential growth in deposits was 2.1% relative to INR 31.05 trillion at the end of March.
Average deposits for the quarter increased by 13.3% YoY, reaching INR 30.11 trillion, whereas this figure was INR 26.58 trillion in the previous year. Compared to the March quarter, average deposits rose by 5.6% from INR 28.51 trillion. Current and savings account deposits (CASA) at the end of June stood at INR 10.26 trillion, which is 9.4% more than INR 9.37 trillion a year ago. However, CASA deposits decreased by 3.3% compared to INR 10.60 trillion at the end of March.
Term deposits at the end of the period increased by 17.4% YoY, reaching INR 21.45 trillion, compared to INR 18.27 trillion a year ago, and rose by 4.9% compared to INR 20.45 trillion at the end of the previous quarter. On average for the quarter, CASA deposits grew by 11.2% YoY to INR 9.57 trillion, an increase of 4.2% compared to INR 9.18 trillion in the March quarter.
According to Reserve Bank of India data, bank lending grew by 17.7% YoY as of two weeks ending June 15, while deposits increased by 12%, reflecting a gap in loan and deposit growth of 570 basis points.
