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Hdfc Bank
(NYSE:HDB)
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Rating:70Outperform
Price Target:
$26.00
▼(-29.02% Downside)
Action:Reiterated
Date:07/21/26
The score is driven primarily by strong financial performance (growth and cash generation) and a constructive but mixed earnings-call outlook (productivity and growth initiatives offset by NIM/CASA pressure and funding risks). Valuation is supportive with a reasonable P/E and solid dividend yield, while technicals remain a headwind given the stock trading below key moving averages despite near-oversold signals.
Positive Factors
Large customer franchise & distribution
A >100 million customer base and broad branch/digital reach provide durable cross-sell and deposit mobilisation advantages. Over 2–6 months this scale supports steady retail deposit acquisition, fee income growth, and better per‑customer economics versus smaller rivals.
Negative Factors
Margin pressure / NIM compression
Compressed net interest margins reduce profitability per unit of assets and can depress ROE as the balance sheet grows. If funding costs remain elevated or competitive spreads stay thin, margin recovery may be slow, constraining sustainable earnings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Large customer franchise & distribution
A >100 million customer base and broad branch/digital reach provide durable cross-sell and deposit mobilisation advantages. Over 2–6 months this scale supports steady retail deposit acquisition, fee income growth, and better per‑customer economics versus smaller rivals.
Read all positive factors
Hdfc Bank (HDB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$124.27B
Dividend Yield3.71%
Average Volume (3M)9.03M
Price to Earnings (P/E)15.7
Beta (1Y)0.49
Revenue Growth-4.47%
EPS Growth4.55%
CountryUS
Employees211,178
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)229.39
Shares Outstanding5,133,776,000
10 Day Avg. Volume8,812,083
30 Day Avg. Volume9,030,848
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.69
Price to Sales (P/S)0.76
P/FCF Ratio2.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.72
Revenue Forecast (FY)$22.13B
Hdfc Bank Business Overview & Revenue Model
Company Description
HDFC Bank Limited is a prominent financial institution providing a comprehensive suite of banking and financial services, catering to both individual and corporate clients across India, Bahrain, Hong Kong, and Dubai. The bank organizes its operati...
How the Company Makes Money
HDFC Bank primarily makes money through (1) net interest income and (2) non-interest (fee and other) income, supported by treasury activities.
1) Net interest income (core banking spread): The bank earns interest and yield on earning assets—such ...
Hdfc Bank Earnings Call Summary
Earnings Call Date:Jul 18, 2026
(Q1-2027)
| Next Earnings Date:Oct 19, 2026
Earnings Call Sentiment Positive
The call balanced tangible operational and franchise strengths — stronger branch productivity, healthy disbursements across corporate, MSME and retail channels, >100 million customers, active FCNR/ECLGS participation, and multi-year technology/AI investments — against near-term pressure on margins, a lower CASA ratio and funding mix shifts, and profit growth lagging balance-sheet expansion. Management expressed confidence in reserve adequacy for the ECL transition and emphasized medium-term productivity gains and customer-acquisition momentum; however, margin recovery and deposit-mix normalization are not immediate. On balance, the positives (franchise strength, growth in key segments, digital/AI investments and provisioning preparedness) outweigh the headwinds.Positive Updates
Deposit Growth and Market Share Gains
Deposit growth in Q1 outperformed historical Q1 trends; management reports incremental and stock market-share gains in deposits. Bank is actively mobilizing the FCNR window and expects meaningful inflows (documentations/approvals completed in June); ECLGS 5.0 participation also driving mid-market deposit/loan activity (INR 14,000 crore disbursed under ECLGS as of June 30).
Negative Updates
Margin Pressure / NIM Compression
Margins under pressure; quoted NIM/margin is around ~3.4% (management acknowledged margins are muted). Cost-of-funds improvement is possible but unlikely to happen quickly; non-retail deposit rates remain elevated and competitive spreads (especially on corporate) are thin.
Read all updates
Q1-2027 Updates
Positive
Negative
Deposit Growth and Market Share Gains
Deposit growth in Q1 outperformed historical Q1 trends; management reports incremental and stock market-share gains in deposits. Bank is actively mobilizing the FCNR window and expects meaningful inflows (documentations/approvals completed in June); ECLGS 5.0 participation also driving mid-market deposit/loan activity (INR 14,000 crore disbursed under ECLGS as of June 30).
Read all positive updates
Company Guidance
Management guided that the bank will "press the pedal" on advances while prioritizing cheaper, granular funding and productivity gains: key metrics cited include a retail mix today of ~52% (management’s long‑run aspiration ~60%), >100 million customers, ~9,700 branches with per‑branch productivity ~INR 330 crore (vs INR 266 crore in 2023) and ~40% of branches <5 years vintage; deposit and funding signals to watch are borrowings at ~11% (with ~INR 40–50k crore of maturities over the next couple of years), system liquidity averaging INR 2.08 trillion (peak INR 5.5T, trough -INR 0.43T), FCNR mobilization underway and INR 14,000 crore disbursed under ECLGS 5.0 by 30‑Jun, while loan momentum showed wholesale/corporate ~+18% YoY, MSME/business banking +22.3% and mortgage disbursements +14%; management expects cost‑of‑funds improvements to support margins (potential 40–50 bps benefit) as mix shifts, and said the bank is prepared for the April‑1‑2027 ECL transition with coverage ~66% (≈70% excl. agri), unsecured coverage in the mid‑70s and Stage‑1/2 floors of 1%/5%.Hdfc Bank Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.21T | 4.19T | 3.52T | 1.98T | 1.60T |
| Gross Profit | 2.98T | 2.19T | 1.85T | 1.13T | 892.43B |
| EBITDA | 1.12T | 924.57B | 757.81B | 685.87B | 535.98B |
| Net Income | 799.95B | 673.51B | 622.66B | 495.45B | 386.00B |
Balance Sheet | |||||
| Total Assets | 48.11T | 48.19T | 44.12T | 25.76T | 21.11T |
| Cash, Cash Equivalents and Short-Term Investments | 3.06T | 9.20T | 9.93T | 5.31T | 4.34T |
| Total Debt | 5.77T | 7.46T | 8.15T | 3.24T | 2.34T |
| Total Liabilities | 42.14T | 39.56T | 36.23T | 22.84T | 18.60T |
| Stockholders Equity | 5.74T | 7.68T | 6.95T | 2.91T | 2.50T |
Cash Flow | |||||
| Free Cash Flow | 1.72T | 1.13T | 968.48B | 433.58B | 554.69B |
| Operating Cash Flow | 1.76T | 1.20T | 1.02T | 477.20B | 581.02B |
| Investing Cash Flow | -4.57T | -3.72T | -3.67T | -4.39T | -3.30T |
| Financing Cash Flow | 3.44T | 2.42T | 3.35T | 4.17T | 2.91T |
Hdfc Bank Technical Analysis
Negative
36.63
Price Trends
24.86
Negative
25.89
Negative
30.41
Negative
Market Momentum
0.01
Positive
36.07
Neutral
16.82
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 25.85, above the 50-day MA of 24.86, and above the 200-day MA of 30.41, indicating a bearish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 36.07 is Neutral, neither overbought nor oversold. The STOCH value of 16.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HDB.
Hdfc Bank Risk Analysis
Hdfc Bank disclosed 71 risk factors in its most recent earnings report. Hdfc Bank reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hdfc Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $108.69B | 19.24 | 15.75% | 0.85% | -1.31% | -1.68% | |
72 Outperform | $99.81B | 27.07 | 12.34% | 3.11% | 3.92% | 24.15% | |
70 Outperform | $124.27B | 15.71 | 13.60% | 3.03% | -4.47% | 4.55% | |
68 Neutral | $94.48B | 11.08 | 21.64% | 9.77% | 19.64% | 12.10% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $118.52B | 15.88 | 11.34% | 2.31% | 0.35% | 46.06% | |
64 Neutral | $86.24B | 14.32 | 10.75% | 3.19% | -15.15% | 29.78% |
* Financial Sector Average
HDB
Hdfc Bank
23.73
-15.33
-39.25%
IBN
Icici Bank
30.05
-4.13
-12.08%
ITUB
Itau Unibanco
8.40
2.59
44.45%
LYG
Lloyds Banking
6.06
1.93
46.84%
MFG
Mizuho Financial
10.36
4.23
69.00%
PNC
PNC Financial
250.38
58.92
30.77%
Hdfc Bank Corporate Events
HDFC Bank Board Clears Q1 FY27 Results, Trading Window to Reopen July 21
Jul 20, 2026
On July 18, 2026, HDFC Bank’s board approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, and filed them with the U.S. SEC on Form 6-K. The results showed total income of ₹92,184.38 c...
HDFC Bank Gets RBI Nod for Rajiv Kumar as Part-time Chairman
Jul 17, 2026
On July 15, 2026, HDFC Bank reported that the Reserve Bank of India had approved the appointment of Rajiv Kumar as the bank’s Part-time Chairman for a three-year term effective the same date. The approval, granted under Section 10B(1A)(i) of...
HDFC Bank Files FY 2025–26 Integrated Annual Report with U.S. SEC
Jul 14, 2026
On July 11, 2026, HDFC Bank Limited submitted a Form 6-K to the U.S. Securities and Exchange Commission as part of its ongoing obligations as a foreign private issuer listed on the New York Stock Exchange. The filing, signed by Company Secretary a...
HDFC Bank Files Form 6-K, Publishes FY 2025-26 Integrated Report Ahead of August AGM
Jul 13, 2026
HDFC Bank Limited, a leading Indian private sector bank listed on the New York Stock Exchange, continues to serve retail and corporate clients with a wide suite of banking and digital financial services. The bank operates as a foreign private issu...
HDFC Bank Sets July 18 Earnings Call for Q1 FY2026 Results
Jul 10, 2026
HDFC Bank Limited, a major Indian private sector bank with a global investor base through its NYSE listing, operates across retail and corporate banking, payments, and digital financial services. The bank is subject to U.S. reporting requirements ...
HDFC Bank Posts Double-Digit Loan and Deposit Growth in June 2026 Quarter
Jul 6, 2026
HDFC Bank reported robust expansion in lending and deposit volumes for the quarter ended June 30, 2026, compared with the same period a year earlier. Average advances under management rose 10.8% year-on-year to ₹30,386 billion, while period-...
HDFC Bank Overhauls Top Finance and Legal Roles With New CFO and General Counsel Appointments
Jun 30, 2026
On June 29, 2026, HDFC Bank’s board approved significant senior leadership changes, appointing Puneet Sharma as Chief Financial Officer-Designate from September 1, 2026, with elevation to Chief Financial Officer on December 1, 2026. Sharma, ...
HDFC Bank Names Rajiv Kumar Independent Director and Part-time Chairman-Designate
Jun 29, 2026
On June 29, 2026, HDFC Bank’s board approved the appointment of former Finance Secretary and ex-IAS officer Rajiv Kumar as an Additional (Independent) Director for four years effective June 30, 2026, subject to shareholder approval. The boar...
HDFC Bank Sets July 18 Board Meeting to Review Q1 FY27 Results, Imposes Trading Window Closure
Jun 24, 2026
HDFC Bank Limited, a major Indian private-sector lender with significant international listings, provides a wide range of retail and corporate banking services and adheres to U.S. Securities and Exchange Commission reporting requirements as a fore...
HDFC Bank Secures RBI Nod to Extend Interim Chairman, Sets August AGM and Dividend Plan
Jun 22, 2026
On June 18, 2026, HDFC Bank reported that the Reserve Bank of India approved a three-month extension of Keki Mistry’s tenure as interim part-time chairman, running until September 18, 2026 or until a regular part-time chairman is appointed. ...
HDFC Bank Downplays Materiality of Internal Audit Probe in May 28 SEC Filing
May 28, 2026
HDFC Bank has filed a Form 6-K with the U.S. Securities and Exchange Commission dated May 28, 2026, furnishing a clarificatory response sent to Indian stock exchanges regarding recent media reports. The filing, signed by Company Secretary Ajay Aga...
HDFC Bank Shareholders Approve Amendments to Employee Stock Incentive Plan via Postal Ballot
May 21, 2026
HDFC Bank reported to the U.S. Securities and Exchange Commission in a Form 6-K dated May 20, 2026, that it had conducted a postal ballot via remote e-voting to seek shareholder approval for amendments to its Employee Stock Incentive Plan 2022. Th...
HDFC Bank Shareholders Clear Reappointment of Independent Director via Postal Ballot
Apr 28, 2026
HDFC Bank disclosed that its shareholders have approved, via postal ballot conducted through remote e-voting between March 28 and April 26, 2026, a special resolution to reappoint Dr. (Mrs.) Sunita Maheshwari as an independent director. The bank s...
HDFC Bank Launches Remote E-Voting Postal Ballot for Shareholders in April 2026
Apr 21, 2026
HDFC Bank Limited has filed a Form 6-K with the U.S. Securities and Exchange Commission for April 2026, confirming its ongoing status as a foreign private issuer reporting under Form 20-F and documenting board-authorized corporate actions. The fil...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.