HDFC Bank Limited
- Open
- 23.36
- Day high
- 23.48
- Day low
- 23.07
- Prev close
- 23.21
- Volume
- 5.0M
- Mkt cap
- $119.0B
- P/E (TTM)
- 7.1
- EPS (TTM)
- $3.30
- P/B
- 1.9
- P/S
- 2.3
- Yield
- 3.57%
- Per share
- $0.83
HDFC Bank Limited (HDB) is a Financial Services company listed on NYSE. The stock is down 35% over the past year. Drillr has 2 published research articles covering HDB.
HDFC Bank Limited (HDB) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HDB earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 18, 2026 | $0.38 | $0.40 | +5.3% | $4.8B | -3.9% |
| Apr 18, 2026 | $0.39 | $0.43 | +10.3% | $5.0B | -2.5% |
| Jan 17, 2026 | $0.39 | $0.43 | +10.3% | $14.2B | +154.6% |
| Oct 18, 2025 | $0.36 | $0.44 | +22.2% | $13.6B | +163.0% |
| Jul 19, 2025 | $0.38 | $0.37 | -2.6% | $15.5B | +211.5% |
| Jan 22, 2025 | $0.37 | $0.41 | +10.8% | $13.1B | +164.3% |
| Oct 19, 2024 | $0.50 | $0.43 | -14.0% | $10.8B | +132.9% |
| Jul 20, 2024 | $0.25 | $0.39 | +56.0% | $14.0B | +198.7% |
| Apr 20, 2024 | $0.35 | $0.42 | +20.0% | $8.2B | +69.6% |
| Jan 16, 2024 | $0.35 | $0.41 | +17.1% | $13.8B | +205.1% |
| Jul 17, 2023 | $0.80 | $0.40 | -50.2% | $7.4B | +98.5% |
| Jan 14, 2023 | $0.41 | $0.41 | -0.2% | $6.7B | +78.4% |
HDB insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 8, 2026 | Srinivasan Nofficer: Group Head - Operations | Sell | 10,000 | $8.72 |
| Apr 30, 2026 | Parthasarthy Ashishofficer: Group Head - Treasury | Sell | 5,600 | $8.70 |
| Apr 22, 2026 | Parthasarthy Ashishofficer: Group Head - Treasury | Sell | 6,000 | $8.94 |
| Mar 24, 2026 | Srinivasan Nofficer: Group Head - Operations | Sell | 10,000 | $8.21 |
Source: HDB SEC Form 4 filings, latest May 8, 2026. For informational purposes only — not investment advice.
See the full HDB insider & 13F page →HDB research & analysis
[HDB] HDFC Bank Thesis 2026: Post-Merger Deposit Mix Drives India Retail Banking Cycle
HDFC Bank Ltd. (NYSE: HDB) FY2026 (ending March 2026) revenue ~₹3.4-3.6 lakh crore (~$40-43B; +8-12%) with diluted EPS ~₹95-105 reflecting continued post-July 2023 ~$40B HDFC Limited (parent) reverse merger integration progress + selected deposit mix recovery toward ~60-65% retail deposits + selected loan-to-deposit ratio normalization toward ~85-90% (post-merger ~110% peak) + continued ~13-15% loan growth + ~3.4-3.6% NIM under continued CEO Sashidhar Jagdishan (~5-year tenure since October 2020). India's largest private sector bank and second-largest bank by market capitalization with selected ~$160B+ combined entity post-merger serving selected ~95M+ customer relationships across India + selected international operations through ~9,200+ branches + ~21,000+ ATMs + digital banking platforms. Founded August 1994 in Mumbai India as private sector bank under HDFC Limited (founded 1977 as India's first specialized housing finance company under HT Parekh + Deepak Parekh) sponsorship (~31-year heritage); selected post-1995 Bombay Stock Exchange listing; selected post-2000 NYSE ADR listing; selected post-July 2008 ~$2.6B Centurion Bank of Punjab acquisition; selected post-July 2023 ~$40B HDFC Limited reverse merger (parent housing finance company merged into bank subsidiary creating selected combined ~$160B+ market cap entity + India's largest private sector bank). Headquartered in Mumbai India; ~210,000+ employees globally with ~₹3.4-3.6 lakh crore revenue. Three primary revenue segments: Retail Banking ~50%+ (~₹1.7-1.8 lakh crore — retail loans including mortgage + auto + personal + credit card + selected various retail products + ~95M+ customer relationships), Wholesale Banking ~30% (~₹1.0-1.1 lakh crore — corporate + SME + commercial real estate + selected agriculture), Treasury + Other ~20% (~₹0.7 lakh crore — investment + trading + selected various non-banking). Post-merger deposit mix recovery: post-July 2023 HDFC Limited reverse merger created LDR ~110% peak vs ~80-85% pre-merger; FY2025-2026 deposit mobilization priority drove ~+18-22% deposit growth (~+₹4-5 lakh crore aggregate FY2024-2025) reducing LDR toward ~95-100%; FY2026 catalyst: continued LDR normalization toward ~85-90% + retail deposit mix recovery toward ~60-65% + ~₹15-20 incremental annual EPS contribution; CASA ratio ~38-42%. Loan growth cycle: ~13-15% loan growth FY2026 (vs ~50%+ FY2024 merger spike + ~10-12% FY2025 normalization) covering Retail ~50%+ (~+15-18%) + Corporate ~25-30% (~+10-12%) + SME ~10-15% (~+15-20%) + Agriculture ~5-8% (~+8-10%); FY2026 catalyst: India retail credit cycle continuation + ~₹20-30 incremental annual EPS. NIM + cost-to-income: NIM ~3.4-3.6% FY2026 (vs ~3.6% FY2024 + ~4.0% FY2023 pre-merger; HDFC Limited mortgage book lower NIM ~2.0-2.5% vs HDFC Bank standalone ~4.0%); cost-to-income ratio ~40-42% FY2026 (vs ~38% pre-merger reflecting branch + IT integration spend); FY2026 catalyst: continued NIM stability + cost-to-income normalization. CEO Sashidhar Jagdishan since October 2020 (succeeded Aditya Puri CEO 1994-October 2020 retired who founded HDFC Bank 1994 + led ~26-year transformation; Jagdishan ex-HDFC Bank CFO 2008-2019 + ~28-year company career). Capital return: ~₹19.50-22 annual dividend FY2026 (~+5-10% growth post-2025 ₹19.50 dividend); modest buybacks; selected post-2024 capital adequacy ratio (CAR) ~17-18% (Tier 1 ~16-17%); investment-grade Baa3/BBB- credit rating; FY2026 catalyst: continued capital deployment for loan growth + ~50% net income retention. FY2026 thesis: continued post-merger integration + LDR normalization + retail deposit mix recovery + ~13-15% loan growth + ~10-15% EPS growth. Risks: India macro deceleration, asset quality (gross NPA ~1.3-1.4%; retail unsecured + MFI portfolio watch), funding cost (RBI repo rate cuts + competitive deposit pricing), integration execution, foreign ownership cap.
India Stocks See Record Foreign Selloff — Why INFY Wins While HDB and IBN Falter
Record foreign selling in Indian stocks, fueled by an oil price surge, has intensified risks for US-listed exposures as per Bloomberg. Defensive IT leader Infosys (INFY) emerges as the top pick with USD revenues and AI tailwinds, outperforming cyclical banks (HDB, IBN) and broad ETFs (INDA, EPI). Tata Motors (TTM) faces the steepest headwinds from consumer squeeze.
INDAEPIINFY
HDFC Bank Limited company profile
Overview
HDFC Bank Limited (NSE:HDFCBANK) is India's largest private sector bank and one of the country's most prominent financial institutions. Founded in 1994 in Mumbai, the bank was established as a subsidiary of Housing Development Finance Corporation Limited (HDFC), India's leading housing finance company. Over three decades, HDFC Bank has grown to become a dominant player in Indian banking, serving over 93 million customers through an extensive network of more than 21,000 banking outlets across India, with additional operations in Bahrain, Hong Kong, and Dubai. The bank went public in 2001 and has consistently been recognized as one of India's most valuable and well-managed financial institutions.
Business
HDFC Bank operates as a full-service commercial bank providing comprehensive banking and financial services across multiple segments. The bank's operations are organized into five main business segments: Treasury Operations manage the bank's investment portfolio, government securities, and money market operations. This segment handles liquidity management, foreign exchange trading, and interest rate risk management for the institution. Retail Banking represents the largest revenue contributor, serving individual customers and small businesses. This segment offers savings and current accounts, personal loans, home loans, auto loans, credit cards, and investment products. Retail banking generates approximately 60-65% of the bank's total revenue and focuses heavily on digital banking services and branch-based customer acquisition. Wholesale Banking serves large corporations, government entities, and institutional clients. This segment provides working capital finance, term loans, trade finance, cash management services, and treasury products to corporate customers. It contributes roughly 25-30% of total revenues. Other Banking Business includes fee-based services such as insurance distribution, investment advisory, wealth management, and transaction processing services. This segment generates around 10-15% of revenues through commission and fee income. The bank operates in India's highly regulated banking sector, which is dominated by both public sector banks (government-owned) and private sector banks. As India's economy has grown and financial inclusion has expanded, banking services have become increasingly important for both individual consumers and businesses. HDFC Bank has positioned itself as a technology-forward institution, investing heavily in digital banking platforms, mobile applications, and automated customer service systems to compete effectively in this evolving landscape.
Revenue model
HDFC Bank generates revenue through multiple streams typical of commercial banking operations. The primary revenue source is net interest income, which accounts for approximately 70-75% of total revenues. This income is generated by lending money to customers at higher interest rates than what the bank pays on deposits, creating a net interest margin currently around 3.4-3.6%. The bank lends to retail customers through personal loans, home mortgages, and credit cards, while also providing commercial loans to businesses of all sizes. The secondary revenue stream comes from fee-based income, representing 25-30% of total revenues. This includes credit card fees, transaction processing charges, account maintenance fees, loan processing fees, and commissions from selling insurance and investment products. The bank also earns foreign exchange income, trade finance fees, and treasury income from its investment activities. HDFC Bank's paying customers include individual retail clients who maintain deposits and take loans, small and medium enterprises requiring working capital and term financing, and large corporations needing sophisticated cash management and trade finance services. The bank has built a particularly strong franchise in retail banking, with over 93 million customer relationships. Several factors influence the bank's profitability margins. Positive margin drivers include India's economic growth driving loan demand, increasing financial inclusion expanding the customer base, digital banking reducing operational costs, and the bank's strong brand enabling premium pricing. The bank benefits from India's relatively young population increasingly adopting formal banking services. Margin pressures come from intense competition among private banks for high-quality customers, regulatory requirements for priority sector lending to agriculture and small businesses (often at lower margins), rising deposit costs during periods of tight liquidity, and potential credit losses during economic downturns. The Reserve Bank of India's monetary policy significantly impacts both funding costs and loan demand, directly affecting net interest margins.
Competitive moat
HDFC Bank possesses a strong competitive moat built on several sustainable advantages that are difficult for competitors to replicate quickly. The bank's primary moat stems from its extensive distribution network of over 21,000 banking outlets and 18,000 ATMs, which took decades to build and requires significant capital investment to replicate. This physical presence is complemented by strong brand recognition and customer trust, particularly valuable in India where banking relationships tend to be sticky and long-term. The bank's technological infrastructure represents another significant moat. HDFC Bank has invested heavily in digital banking platforms, core banking systems, and data analytics capabilities, creating operational efficiencies and customer experience advantages that newer entrants struggle to match. The bank's ability to process high transaction volumes reliably has made it a preferred partner for both individual customers and corporate clients. Regulatory advantages also strengthen the moat. As an established player with strong capital ratios and risk management systems, HDFC Bank benefits from regulatory stability and often receives preferential treatment for new business opportunities. The Indian banking sector's high regulatory barriers to entry protect existing players from new competition. However, the moat faces several potential threats. Fintech companies are increasingly offering specialized financial services with superior user experiences, potentially eroding the bank's customer relationships in specific product areas. Digital payment platforms and neo-banks could disintermediate traditional banking services, particularly among younger customers. Additionally, other large private banks like ICICI Bank and Axis Bank, as well as new-age digital banks, continue to invest heavily in technology and customer acquisition, intensifying competition for high-value customers. The strength of HDFC Bank's moat remains substantial but requires continuous investment in technology, customer service, and product innovation to maintain its competitive advantages in India's rapidly evolving financial services landscape.
Risks & safety
HDFC Bank demonstrates a strong margin of safety with robust financial fundamentals and conservative risk management practices. Liquidity and Solvency: • Cash and short-term investments of ₹268 billion provide substantial liquidity buffer • Debt-to-equity ratio of 1.30x is typical for banking operations and well within regulatory limits • Strong deposit franchise with 16% year-over-year deposit growth reducing funding risk • Gross NPA ratio maintained at low 1.4%, indicating strong asset quality • Adequate provisioning with floating provisions providing additional safety cushion Valuation Metrics: • Price-to-earnings ratio of 19.8x appears reasonable for a quality Indian private bank • Price-to-book ratio of 2.78x reflects premium valuation but justified by superior ROE • Return on equity of 14% (annual basis) demonstrates efficient capital utilization • Graham number suggests intrinsic value around ₹580, providing some valuation support Other Considerations: • Consistent profitability with net income growing despite challenging macro environment • Strong regulatory capital ratios exceeding minimum requirements • Diversified revenue streams reducing concentration risk • Established market position in India's growing economy provides long-term growth visibility
Recent development
Over the past few years, HDFC Bank has undertaken several strategic initiatives to strengthen its market position and prepare for future growth. The bank has significantly expanded its physical presence, adding over 1,000 branches in the last 12 months alone, bringing its total network to over 21,000 outlets. This aggressive expansion strategy aims to capture market share in India's growing economy and improve customer accessibility. The bank has focused heavily on deposit mobilization to improve its credit-deposit ratio, which had become stretched due to rapid loan growth in previous years. Management has successfully grown deposits at 15-16% annually while moderating loan growth to around 8%, helping normalize the loan-to-deposit ratio and improve liquidity metrics. Digital transformation remains a key strategic priority, with continued investments in technology infrastructure, mobile banking platforms, and customer analytics capabilities. The bank has enhanced its digital customer acquisition processes and expanded its suite of digital financial products to compete with fintech companies. HDFC Bank has adopted a more cautious approach to credit growth, particularly in large corporate lending and unsecured retail segments. Management has emphasized maintaining asset quality over aggressive growth, implementing stricter underwriting standards and focusing on profitable customer segments. This strategy reflects lessons learned from previous credit cycles and preparation for potential economic volatility. The bank has also been working to meet priority sector lending requirements through a combination of organic lending to agriculture and small businesses, as well as investments in priority sector lending certificates and rural bonds. This compliance-focused approach ensures regulatory adherence while optimizing capital allocation. Looking ahead, management has indicated plans to accelerate loan growth beginning in FY 2026, contingent on improved macroeconomic conditions and successful completion of the current balance sheet optimization phase.
HDB company profile · for informational purposes only — not investment advice.
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