Hdfc Bank (HDB) AI Stock Analysis

• Market Cap: $140.12B
• Dividend Yield: 3.03%
• Average Volume (3M): 7.27M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.32
• Revenue Growth: -1.78%
• EPS Growth: 0.65%
• Country: US
• Employees: 214,521
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.40
• Shares Outstanding: 5,130,117,000
• 10 Day Avg. Volume: 8,907,587
• 30 Day Avg. Volume: 7,270,585
• PEG Ratio: 8.19
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 3.46
• P/FCF Ratio: 12.86
• Enterprise Value/Market Cap: 122.56
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 7.39
• Enterprise Value/Ebitda: 18.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.6
• Revenue Forecast (FY): $21.17B

• Rating: 71 Outperform
• Price Target: $31.00 ▼(-15.37% Downside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

The score is primarily supported by strong underlying financial performance and constructive earnings-call guidance on growth, liquidity, and asset quality. It is held back by weak cash-flow conversion and bearish technical signals (price below key moving averages and negative MACD), while valuation and dividend yield provide moderate support.

Positive Factors

Revenue & Margin Strength

Sustained ~19% revenue growth and high net margins demonstrate durable franchise economics and pricing power across retail and corporate segments. Strong profitability supports reinvestment, organic capital generation and ROE resilience over the medium term, underpinning strategic initiatives and growth plans.

Liquidity & Funding Discipline

A 116% LCR and disciplined deposit strategy reduce solvency and funding risks, giving the bank a durable buffer against shocks. Lower cost of funds and positive CASA momentum improve net interest margins over time and lower reliance on volatile wholesale funding.

Scale & Distribution

Extensive branch network and a 100m customer base provide structural competitive advantages for cross-sell, deposit mobilization and low-cost liability gathering. Branch productivity and steady new relationship additions sustain medium-term deposit and fee-income growth.

Negative Factors

Poor Cash Conversion

Material negative free cash flow and weak operating cash conversion indicate earnings are not translating into cash efficiently. This constrains internal funding for growth, dividends or buffers and may increase reliance on deposits or wholesale funding over the coming months.

LDR Reduction Required

A mandated glide-path to materially lower LDR requires sustained deposit acceleration. Failure to attract cheaper liabilities could force curbs on loan growth or pressure margins if the bank chases deposits, creating a structural growth-versus-cost tradeoff over 2–6 months.

Regulatory & Actuarial Uncertainty

Unsettled labor-code accounting and agri provisioning risks imply potential recurring charges or higher provisions. Regulatory calibration can alter capital planning and earnings predictability, creating structural downside risk until rules and impacts are fully clarified.

Hdfc Bank Business Overview & Revenue Model

Company Description

HDFC Bank Limited provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. It operates in Treasury, Retail Banking, Wholesale Banking, Other Banking Business, and Unallocated segments. The company accepts savings, salary, current, rural, public provident fund, pension, and Demat accounts; fixed and recurring deposits; and safe deposit lockers; as well as offshore accounts and deposits, overdrafts against fixed deposits, and sweep-in facilities. It also provides personal, home, car, two wheeler, business, educational, gold, consumer, and rural loans; loans against properties, securities, rental receivables, and assets; loans for professionals; government sponsored programs; and loans on credit card, as well as working capital and commercial/construction equipment finance, healthcare/medical equipment and commercial vehicle finance, dealer finance, and term and professional loans. The company offers credit, debit, prepaid, and forex cards; payment and collection, export, import, remittance, bank guarantee, letter of credit, trade, hedging, and merchant and cash management services; insurance and investment products. It provides short term finance, bill discounting, structured finance, export credit, loan syndication, and documents collection services; online and wholesale, mobile, and phone banking services; unified payment interface, immediate payment, national electronic funds transfer, and real time gross settlement services; and channel financing, vendor financing, reimbursement account, money market, derivatives, employee trusts, cash surplus corporates, tax payment, and bankers to rights/public issue services, as well as financial solutions for supply chain partners and agricultural customers. As of March 31, 2022, the company had 21,683 banking outlets; 6,342 branches; and 18,130 automated teller machines in 3,188 cities/towns. HDFC Bank Limited was incorporated in 1994 and is based in Mumbai, India.

How the Company Makes Money

HDFC Bank primarily earns revenue through net interest income and fee-based income. Net interest income is generated from the spread between interest earned on loans and other interest-earning assets (such as advances to customers and investments) and interest paid on deposits and other borrowings; growth in loan volumes, changes in lending yields, funding costs, and asset mix influence this spread. Fee and commission income comes from providing banking services such as payments and transaction banking, credit card and merchant acquiring fees, account/service charges, cash management, trade finance (e.g., letters of credit and guarantees), loan processing/servicing fees, and distribution/third-party referral income (e.g., selling investment and insurance products where applicable). The bank also earns treasury and other income from its investment portfolio and trading/market activities (e.g., gains/losses on securities and foreign exchange), subject to market conditions and regulations. Additional drivers of earnings include cross-selling across its customer base, scale from its branch and digital distribution, credit performance (provisions/credit costs reduce profitability), and regulatory requirements that affect liquidity, capital, and permissible activities. Specific partnership details (e.g., named co-brand or distribution partners) are not provided here: null.

Hdfc Bank Financial Statement Overview

Summary

Strong income statement performance (revenue growth ~19% and healthy margins) and a solid balance sheet (ROE ~13.6%, moderate leverage) are offset by weak cash-flow conversion, including negative free cash flow and poor operating cash flow to net income.

Income Statement

HDFC Bank exhibits strong revenue and profit growth. The revenue growth rate from 2024 to 2025 is approximately 19.15%, reflecting a robust upward trajectory. Gross profit margin stands at 52.21%, and net profit margin at 16.88%, indicating high profitability. The EBIT and EBITDA margins are also healthy at 20.53% and 22.04%, respectively, showcasing efficient operations. Overall, the income statement suggests strong and growing financial performance.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 1.22, indicating moderate leverage. The equity ratio is 11.88%, demonstrating a reasonable proportion of equity financing. Return on equity is strong at 13.57%, suggesting effective use of equity capital. The financial stability is commendable, though the leverage could pose risks if not managed carefully.

Cash Flow

The cash flow statement reveals some challenges in free cash flow generation, with a negative free cash flow of -2,108,450,000,000 in the latest year. The free cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. However, the operating cash flow to net income ratio is -2.92, showing room for improvement in cash flow management. Despite these issues, the bank's cash reserves remain substantial, aiding resilience.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.50T	4.19T	3.52T	1.98T	1.60T	1.53T
Gross Profit	2.32T	2.19T	1.85T	1.13T	892.43B	782.43B
EBITDA	905.96B	924.57B	757.81B	685.87B	535.98B	453.69B
Net Income	715.38B	673.51B	622.66B	495.45B	386.00B	325.98B
Balance Sheet
Total Assets	46.26T	48.19T	44.12T	25.76T	21.11T	17.98T
Cash, Cash Equivalents and Short-Term Investments	1.92T	9.20T	9.93T	7.24T	4.34T	5.32T
Total Debt	6.16T	7.46T	8.15T	3.24T	2.34T	1.48T
Total Liabilities	40.39T	39.56T	36.23T	22.84T	18.60T	15.82T
Stockholders Equity	5.65T	7.68T	6.95T	2.91T	2.50T	2.16T
Cash Flow
Free Cash Flow	0.00	1.13T	968.48B	433.58B	554.69B	903.97B
Operating Cash Flow	0.00	1.20T	1.02T	477.20B	581.02B	921.78B
Investing Cash Flow	0.00	-3.72T	-3.67T	-4.39T	-3.30T	-2.52T
Financing Cash Flow	0.00	2.42T	3.35T	4.17T	2.91T	1.92T

Hdfc Bank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HDB, the sentiment is Negative. The current price of 36.63 is above the 20-day moving average (MA) of 30.96, above the 50-day MA of 32.29, and above the 200-day MA of 35.44, indicating a bearish trend. The MACD of -1.21 indicates Positive momentum. The RSI at 30.60 is Neutral, neither overbought nor oversold. The STOCH value of 15.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HDB.

Hdfc Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITUB	74 Outperform	$88.92B	9.08	21.64%	9.77%	11.82%	3.41%
PNC	72 Outperform	$80.98B	10.18	11.88%	3.11%	1.79%	30.93%
HDB	71 Outperform	$140.12B	21.06	13.72%	3.03%	-1.78%	0.65%
IBN	69 Neutral	$98.70B	18.92	15.95%	0.85%	10.85%	7.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LYG	64 Neutral	$74.14B	12.62	9.93%	3.19%	-20.94%	-18.71%
MFG	57 Neutral	$95.62B	10.79	9.73%	2.31%	-2.84%	25.48%

Hdfc Bank Corporate Events

HDFC Bank Launches Postal Ballot, Opens Remote E-Voting for Shareholders

On February 11, 2026, HDFC Bank filed a Form 6-K with the U.S. Securities and Exchange Commission, formally notifying investors of a postal ballot process for its shareholders. The bank has circulated a Postal Ballot Notice dated February 3, 2026 to eligible members and engaged National Securities Depository Limited to facilitate remote e-voting from February 12 to March 13, 2026, underscoring its adherence to governance norms and enabling broader shareholder participation in key resolutions.

The notice has been made available to shareholders whose details are recorded with the depositories and registrar as of the February 6, 2026 cut-off date, and is also accessible on both the bank’s and NSDL’s websites. This move reinforces HDFC Bank’s commitment to transparent disclosure for global investors and signals continued alignment with regulatory best practices in both India and the United States, potentially influencing how stakeholders track and participate in the bank’s corporate decisions.

The most recent analyst rating on (HDB) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Hdfc Bank stock, see the HDB Stock Forecast page.

RBI Clears ICICI Group to Raise Stake in HDFC Bank Up to 9.95%

On February 11, 2026, HDFC Bank disclosed that the Reserve Bank of India has approved ICICI Prudential Asset Management Company, together with ICICI group entities, to raise their aggregate holding in HDFC Bank up to 9.95% of its paid-up share capital or voting rights. The ICICI group currently holds 4.07% as of February 6, 2026, and must complete any increase within one year, remain within the 9.95% cap, and seek fresh RBI approval if its stake later falls below 5%, underscoring tighter regulatory oversight of significant shareholdings in Indian banks and potentially reshaping HDFC Bank’s shareholder profile.

The most recent analyst rating on (HDB) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Hdfc Bank stock, see the HDB Stock Forecast page.

HDFC Bank Reappoints Kaizad Bharucha as Deputy Managing Director

At its February 3, 2026 board meeting, HDFC Bank approved the reappointment of veteran executive Kaizad Bharucha as deputy managing director for a three-year term beginning April 19, 2026, highlighting his broad operational oversight across assets, risk, and integration initiatives. Continuity under Bharucha’s leadership signals strategic stability for the bank as it manages post-merger integration, deepens government program participation, and sustains its dominant balance-sheet position in India’s competitive private banking landscape.

The most recent analyst rating on (HDB) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Hdfc Bank stock, see the HDB Stock Forecast page.

HDFC Bank Secures RBI Approval to Re-Appoint Kaizad Bharucha as Deputy Managing Director

On January 20, 2026, HDFC Bank announced that the Reserve Bank of India has approved the re-appointment of Kaizad Bharucha as Whole-time Director and Deputy Managing Director for a further three-year term starting April 19, 2026, following recommendations from the bank’s Governance, Nomination and Remuneration Committee and its Board. The regulatory nod secures continuity in HDFC Bank’s top executive leadership, underscoring RBI’s confidence in the bank’s governance framework and providing stability for stakeholders as the lender navigates its strategic and operational priorities over the coming years.

The most recent analyst rating on (HDB) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Hdfc Bank stock, see the HDB Stock Forecast page.

HDFC Bank Posts Strong Q3 FY26 Unaudited Results, Executive Director Bhavesh Zaveri to Retire in April

On January 17, 2026, HDFC Bank’s board approved the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, reporting continued growth in interest income and net profit, supported by higher other income and controlled operating expenses, with no exceptional items booked in the period. At the same meeting, the board recorded that Executive Director Bhavesh Zaveri will retire from his role at the close of business on April 18, 2026, after deciding not to seek reappointment in order to pursue opportunities outside the banking sector, marking a forthcoming change in the bank’s senior leadership while the board formally acknowledged his long service.

The most recent analyst rating on (HDB) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Hdfc Bank stock, see the HDB Stock Forecast page.

HDFC Bank Sets January 17 Earnings Call on Q3 and Nine-Month FY2025 Results

On January 12, 2026, HDFC Bank Limited, a major Indian private sector bank with diversified retail and corporate banking operations, filed a Form 6-K with the U.S. Securities and Exchange Commission in connection with its upcoming earnings communication. The bank announced it will host an earnings call with analysts and investors on January 17, 2026, at 18:00 IST to discuss its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, underscoring its ongoing engagement with global capital markets and providing stakeholders with an opportunity to assess recent operating performance and financial trends ahead of the formal results release.

The most recent analyst rating on (HDB) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Hdfc Bank stock, see the HDB Stock Forecast page.

HDFC Bank Reports Double-Digit Deposit and Loan Growth for December 2025 Quarter

In an intimation dated January 5, 2026, HDFC Bank reported that its lending and deposit franchises continued to expand solidly through the December 2025 quarter. Average advances under management for the quarter reached ₹28,639 billion, up about 9.0% year-on-year from ₹26,276 billion in the December 2024 quarter, while period-end advances under management rose 9.8% to approximately ₹29,460 billion as of December 31, 2025; period-end gross advances grew an even stronger 11.9% to approximately ₹28,445 billion over the same 12-month period. On the liability side, average deposits for the December 2025 quarter increased 12.2% year-on-year to ₹27,524 billion, driven by 13.4% growth in average time deposits to ₹18,539 billion and 9.9% growth in average CASA deposits to ₹8,984 billion, with period-end total deposits up 11.5% to roughly ₹28,595 billion and CASA balances up 10.1% to about ₹9,610 billion as of December 31, 2025. These figures underscore continued balance sheet expansion and stable funding growth for the bank ahead of its limited review results for the quarter by statutory auditors, signaling sustained scale and franchise strength for lenders, depositors and investors, even as detailed profitability and asset quality metrics await formal quarterly financial disclosures.

The most recent analyst rating on (HDB) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Hdfc Bank stock, see the HDB Stock Forecast page.

HDFC Bank Sets January 17 Board Meeting to Review Q3 FY2025-26 Results, Imposes Trading Window Closure

On December 23, 2025, HDFC Bank Limited announced that its Board of Directors will meet on January 17, 2026 to consider and approve the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. In line with its share dealing code and securities regulations, the bank has imposed a trading window closure for designated employees and their immediate relatives from December 25, 2025 to January 19, 2026, underscoring its adherence to insider trading norms ahead of a key earnings disclosure that will be closely watched by investors and regulators.

The most recent analyst rating on (HDB) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Hdfc Bank stock, see the HDB Stock Forecast page.

HDFC Bank Secures RBI Approval for Stake Acquisition in IndusInd Bank Group Entities

HDFC Bank has received approval from the Reserve Bank of India (RBI) to acquire up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank Limited through its group entities. Valid until December 14, 2026, the decision aligns with RBI’s regulations concerning aggregate holdings by banks, body corporates, and promoter groups. Although HDFC Bank does not intend to directly invest in IndusInd, the approval ensures compliance for its entities as their investments exceed prescribed limits, potentially strengthening its market presence and compliance framework.

The most recent analyst rating on (HDB) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Hdfc Bank stock, see the HDB Stock Forecast page.