HDFC Bank Ltd
HDFC Bank Ltd
Financial Services F&OHDFC Bank Limited (also known as HDFC) is an Indian banking and financial services company headquartered in Mumbai. It is India's largest private sector bank by assets and the world's tenth-largest bank by market capitalization as of May 2024. As of April 2024, HDFC Bank has a market capitalization of $145 billion, making it the third-largest company on the Indian stock exchanges. [1]
HDFC Bank trades at a reasonable PE of 15.1x with 97% analyst buy ratings and a consistent 19% profit CAGR over 5 years. While near-term growth has slowed to 8% TTM profit growth and the stock has underperformed with -21% 1-year return, the valuation offers an attractive entry point for India's largest private bank at Rs 12.02 lakh crore market cap.
Key Fundamentals
LargecapPrivate BankBanksTechnical Indicators
Key Insights
Strengths
3- Company has delivered good profit growth of 19.0% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 26.1%
- Company's median sales growth is 16.3% of last 10 years
Weaknesses
3- Company has low interest coverage ratio.
- Contingent liabilities of Rs.27,80,601 Cr.
- Earnings include an other income of Rs.1,46,848 Cr.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoHDFC Bank trades at a reasonable PE of 15.1x with 97% analyst buy ratings and a consistent 19% profit CAGR over 5 years. While near-term growth has slowed to 8% TTM profit growth and the stock has underperformed with -21% 1-year return, the valuation offers an attractive entry point for India's largest private bank at Rs 12.02 lakh crore market cap.
- Overwhelming analyst consensus with 97.37% buy ratings (37 out of 38 analysts) and zero sell ratings
- Attractive valuation at PE of 15.1x, well below historical averages for quality large-cap private banks
- Strong 5-year compounded profit growth of 19% CAGR demonstrating consistent earnings power
- Healthy 10-year compounded sales growth of 19% showing long-term business momentum
- Dividend yield of 2.32% with consistent payout ratio of 26.1%, providing income support
- Price-to-book of 2.05x is reasonable for a bank with 15% 5-year average ROE
- 10-year stock CAGR of 10% despite recent underperformance suggests long-term wealth creation track record
- Market cap of Rs 12.02 lakh crore provides deep liquidity and index weight ensuring institutional flows
- Sharp stock price decline of -21% over 1 year indicating significant market concerns post-merger integration
- TTM sales growth decelerated sharply to just 4% compared to 27% 3-year CAGR, signaling growth slowdown
- Massive contingent liabilities of Rs 27.81 lakh crore pose tail risk to balance sheet
- ROE declined to 14% last year from 16% 10-year average, suggesting return profile compression post-HDFC merger
- Low interest coverage ratio raises concerns about debt servicing capacity in a rising rate environment
- Other income of Rs 1.47 lakh crore inflates reported earnings, masking core operating performance
- Zero stock price appreciation over 5 years (0% CAGR) despite strong profit growth indicates de-rating
- 3-year stock CAGR of -2% shows prolonged underperformance even as broader markets rallied
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- $750m bond issue at 5.067% Jun 16
HDFC Bank raised USD 750 million via 5-year senior unsecured bonds at 5.067% coupon through its GIFT City unit, listing on India International Exchange and NSE IFSC. Demonstrates strong international market access and investor confidence.
- Strong institutional block trade activity Jun 24
Twenty-four NSE block trades totalling over Rs. 853 crores with prices ranging from Rs. 737.30 to Rs. 790.40 per share, reflecting sustained institutional demand for the stock.
- Keki Mistry continues as Chairman Jun 18
RBI approved Keki Mistry's extension as interim Part-time Chairman for three months. Board also approved the 32nd AGM on August 5, 2026 via video-conferencing.
- Investor meets at major conferences May 26
HDFC Bank scheduled meetings with analysts and institutional investors on June 1-2 at BofA India Conference and Morgan Stanley India Investment Forum 2026 in Mumbai.
- Denies wrongdoing, cites strong controls May 27
HDFC Bank categorically denied any misconduct allegations, reaffirming robust internal controls and compliance standards to reassure stakeholders.
- Special window for share transfer Jun 02
HDFC Bank opened a special window until February 4, 2027 for transfer and dematerialisation of physical shares purchased before April 1, 2019.
TL;DR: HDFC Bank shows steady institutional confidence with over Rs. 853 crores in block trades and a successful $750 million international bond issuance. No material headwinds emerged in this period, and governance continuity is maintained with Keki Mistry's chairman extension. The wrongdoing denial bears monitoring but the bank's categorical rebuttal and emphasis on internal controls suggests no escalation. Overall trend is stable with positive capital market signals.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 47,548 | 51,168 | 75,039 | 78,008 | 79,434 | 81,546 | 83,002 | 85,040 | 86,779 | 87,372 | 86,994 | 87,067 | 87,182 |
| Expenses | 17,770 | 18,470 | 45,349 | 50,530 | 62,938 | 49,690 | 52,074 | 41,307 | 47,709 | 64,497 | 45,161 | 54,145 | 44,028 |
| Financing Profit | 7,172 | 6,744 | -11,560 | -15,764 | -27,196 | -12,723 | -14,487 | -3,181 | -7,916 | -24,833 | -4,908 | -12,899 | -2,066 |
| Fin. Margin % | 15% | 13% | -15% | -20% | -34% | -16% | -17% | -4% | -9% | -28% | -6% | -15% | -2% |
| Other Income | 9,610 | 9,853 | 32,528 | 37,007 | 44,958 | 35,450 | 38,455 | 27,154 | 33,489 | 45,683 | 31,567 | 39,860 | 29,737 |
| Interest | 22,606 | 25,955 | 41,250 | 43,242 | 43,692 | 44,580 | 45,414 | 46,914 | 46,986 | 47,709 | 46,741 | 45,821 | 45,220 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 16,783 | 16,597 | 20,967 | 21,243 | 17,761 | 22,727 | 23,968 | 23,973 | 25,573 | 20,850 | 26,659 | 26,961 | 27,672 |
| Tax % | 25% | 25% | 17% | 17% | -1% | 24% | 22% | 24% | 25% | 18% | 24% | 23% | 24% |
| Net Profit | 12,634 | 12,403 | 17,312 | 17,718 | 18,013 | 17,188 | 18,627 | 18,340 | 19,285 | 17,090 | 20,364 | 20,691 | 21,074 |
| EPS in Rs | 11.29 | 11.06 | 11.09 | 11.37 | 11.6 | 10.83 | 11.68 | 11.54 | 12.31 | 10.6 | 12.76 | 12.87 | 13.22 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 50,666 | 63,162 | 73,271 | 85,288 | 1,05,161 | 1,22,189 | 1,28,552 | 1,35,936 | 1,70,754 | 2,83,649 | 3,36,367 | 3,48,615 |
| Expenses | 16,164 | 20,055 | 23,856 | 29,532 | 34,856 | 45,459 | 52,457 | 56,557 | 63,042 | 1,74,196 | 1,86,974 | 2,07,830 |
| Financing Profit | 7,214 | 9,037 | 11,374 | 13,374 | 16,592 | 14,593 | 16,848 | 20,795 | 29,932 | -44,685 | -34,501 | -44,706 |
| Fin. Margin % | 14% | 14% | 16% | 16% | 16% | 12% | 13% | 15% | 18% | -16% | -10% | -13% |
| Other Income | 9,546 | 11,212 | 12,905 | 16,057 | 18,947 | 24,879 | 27,333 | 31,759 | 33,912 | 1,24,346 | 1,34,548 | 1,46,848 |
| Interest | 27,288 | 34,070 | 38,042 | 42,381 | 53,713 | 62,137 | 59,248 | 58,584 | 77,780 | 1,54,139 | 1,83,894 | 1,85,491 |
| Depreciation | 680 | 738 | 886 | 967 | 1,221 | 1,277 | 1,385 | 1,681 | 2,345 | 3,092 | 3,805 | 0 |
| PBT | 16,079 | 19,511 | 23,393 | 28,464 | 34,318 | 38,195 | 42,796 | 50,873 | 61,498 | 76,569 | 96,242 | 1,02,141 |
| Tax % | 33% | 34% | 35% | 35% | 35% | 29% | 26% | 25% | 25% | 15% | 24% | 22% |
| Net Profit | 10,703 | 12,821 | 15,317 | 18,561 | 22,446 | 27,296 | 31,857 | 38,151 | 46,149 | 65,446 | 73,440 | 79,219 |
| EPS in Rs | 10.66 | 12.66 | 14.91 | 17.83 | 20.5 | 24.85 | 28.87 | 34.31 | 41.22 | 42.16 | 46.26 | 49.39 |
| Div. Payout % | 19% | 19% | 18% | 18% | 18% | 5% | 11% | 23% | 23% | 23% | 24% | 31% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 501 | 506 | 513 | 519 | 545 | 548 | 551 | 555 | 558 | 760 | 765 | 1,539 |
| Reserves | 62,653 | 73,798 | 91,281 | 1,09,080 | 1,53,128 | 1,75,810 | 2,09,259 | 2,46,772 | 2,88,880 | 4,55,636 | 5,21,024 | 5,79,975 |
| Borrowing | 59,478 | 1,03,714 | 98,416 | 1,56,442 | 1,57,733 | 1,86,834 | 1,77,697 | 2,26,966 | 2,56,549 | 7,30,615 | 6,34,606 | 5,88,485 |
| Deposits | 4,50,284 | 5,45,873 | 6,43,134 | 7,88,375 | 9,22,503 | 11,46,207 | 13,33,721 | 15,58,003 | 18,82,663 | 23,76,887 | 27,10,898 | 30,99,638 |
| Other Liabilities | 34,181 | 38,321 | 59,000 | 48,770 | 58,898 | 71,430 | 78,279 | 90,639 | 1,01,783 | 4,66,296 | 5,24,817 | 6,38,404 |
| Total Liabilities | 6,07,097 | 7,62,212 | 8,92,344 | 11,03,186 | 12,92,806 | 15,80,830 | 17,99,507 | 21,22,934 | 25,30,432 | 40,30,194 | 43,92,110 | 49,08,041 |
| Fixed Assets | 3,225 | 3,667 | 4,000 | 4,008 | 4,369 | 4,776 | 5,248 | 6,432 | 8,431 | 12,604 | 15,258 | 16,492 |
| CWIP | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | 1,49,454 | 1,93,634 | 2,10,777 | 2,38,461 | 2,89,446 | 3,89,305 | 4,38,823 | 4,49,264 | 5,11,582 | 10,05,682 | 11,86,473 | 12,80,216 |
| Other Assets | 4,54,417 | 5,64,912 | 6,77,567 | 8,60,717 | 9,98,991 | 11,86,750 | 13,55,435 | 16,67,238 | 20,10,419 | 30,11,909 | 31,90,379 | 36,11,333 |
| Total Assets | 6,07,097 | 7,62,212 | 8,92,344 | 11,03,186 | 12,92,806 | 15,80,830 | 17,99,507 | 21,22,934 | 25,30,432 | 40,30,194 | 43,92,110 | 49,08,041 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -21,281 | -34,435 | 17,282 | 17,214 | -62,872 | -16,869 | 42,476 | -11,960 | 20,814 | 19,069 | 1,27,242 | 1,13,506 |
| Investing | -800 | -837 | -1,146 | -842 | -1,503 | -1,403 | -1,823 | -2,051 | -2,992 | 16,600 | -3,651 | 6,363 |
| Financing | 18,694 | 37,815 | -5,893 | 57,378 | 23,131 | 24,394 | -7,321 | 48,124 | 23,941 | -3,983 | -1,02,478 | -59,005 |
| Net Cash Flow | -3,387 | 2,542 | 10,242 | 73,750 | -41,244 | 6,122 | 33,332 | 34,113 | 41,762 | 31,687 | 21,113 | 60,864 |
| Free Cash Flow | -22,020 | -35,301 | 16,134 | 16,377 | -64,470 | -18,486 | 40,796 | -14,176 | 17,390 | 14,882 | 1,23,267 | 1,10,144 |
| CFO/OP | -45 | -63 | 51 | 49 | -72 | -8 | 73 | 4 | 35 | 38 | 98 | 97 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 20% | 19% | 18% | 18% | 17% | 16% | 16% | 17% | 17% | 17% | 14% | 14% |
Documents
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Company Information
HDFC Bank Limited (also known as HDFC) is an Indian banking and financial services company headquartered in Mumbai. It is India's largest private sector bank by assets and the world's tenth-largest bank by market capitalization as of May 2024. As of April 2024, HDFC Bank has a market capitalization of $145 billion, making it the third-largest company on the Indian stock exchanges. [1]