Hdfc Bank (HDB)
NYSE:HDB
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Hdfc Bank
(NYSE:HDB)
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Rating:66Neutral
Price Target:
$29.00
▼(-20.83% Downside)
Action:DowngradedDate:03/19/26
The score is led by strong underlying financial performance and a constructive (but not unqualified) earnings outlook. These positives are tempered by very weak technicals (price below all key moving averages with negative MACD and very low RSI/Stoch) and only moderate valuation support despite a strong dividend yield.
Positive Factors
Revenue & Profitability
Sustained high revenue growth (~19%) and healthy net margins indicate durable earnings power across retail and corporate books. Combined with a mid-teens ROE, this supports internal capital generation, cross-sell monetization and reinvestment capacity for 2–6 month strategic initiatives.
Negative Factors
Weak Free Cash Flow
Material negative free cash flow and weak conversion of profits to cash reduce financial flexibility for buybacks, dividends or opportunistic investments. Reliance on wholesale funding or capital markets may rise, increasing sensitivity to funding costs and limiting margin for strategic spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profitability
Sustained high revenue growth (~19%) and healthy net margins indicate durable earnings power across retail and corporate books. Combined with a mid-teens ROE, this supports internal capital generation, cross-sell monetization and reinvestment capacity for 2–6 month strategic initiatives.
Read all positive factors
Hdfc Bank (HDB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$135.66B
Dividend Yield3.03%
Average Volume (3M)11.01M
Price to Earnings (P/E)21.1
Beta (1Y)0.41
Revenue Growth-1.78%
EPS Growth0.65%
CountryUS
Employees214,521
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.40
Shares Outstanding5,131,122,600
10 Day Avg. Volume11,836,767
30 Day Avg. Volume11,014,764
Financial Highlights & Ratios
PEG Ratio8.19
Price to Book (P/B)1.89
Price to Sales (P/S)3.46
P/FCF Ratio12.86
Enterprise Value/Market Cap123.83
Enterprise Value/Revenue3.73
Enterprise Value/Gross Profit7.23
Enterprise Value/Ebitda18.54
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.79
Revenue Forecast (FY)$22.79B
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. ...
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)...
Hdfc Bank Earnings Call Summary
Earnings Call Date:Jan 17, 2026
(Q3-2026)
| Next Earnings Date:Apr 18, 2026
Earnings Call Sentiment Positive
Overall the call conveys a cautiously optimistic tone: multiple operational strengths (encouraging credit growth, positive CASA momentum, lower cost of funds, healthy liquidity with LCR at 116%, strong branch productivity and improving consumer spends) and management confidence in meeting medium-term glide-path targets. Key challenges include an ongoing need to accelerate deposit growth to reduce LDR, a stalled margin recovery post-merger, regulatory/actuarial uncertainties around the labor code and agri compliance, and some competitive pricing pressures in retail products. On balance, the positive indicators and management confidence appear to outweigh the headwinds, although several uncertainties remain that could affect near-term profitability and LDR progress.Positive Updates
Encouraging Credit Growth and Balanced Mix
Management described credit growth buildup as "extremely encouraging" with a balanced mix across customer segments; the bank expects to grow above system next year (system growth guidance ~12%–13%, bank targeting a couple of hundred basis points above that).
Negative Updates
Loan-to-Deposit and CD Ratio Pressure
Management reiterated focus on reducing LDR/CD ratio; target guidance given as a downward glide path to roughly 85%–90% by FY27, implying the need for materially stronger deposit growth. Quarter-to-quarter seasonality and liquidity events could slow progress.
Read all updates
Q3-2026 Updates
Positive
Negative
Encouraging Credit Growth and Balanced Mix
Management described credit growth buildup as "extremely encouraging" with a balanced mix across customer segments; the bank expects to grow above system next year (system growth guidance ~12%–13%, bank targeting a couple of hundred basis points above that).
Read all positive updates
Company Guidance
The management reiterated a clear glide‑path: LDR targeted around 90–96% in FY26 and trending lower toward roughly 85–90% (low‑90s/around 88–90%) by FY27, while planning loan growth a couple of hundred basis points above system (management assumes system credit growth of ~12–13% next year). Key liquidity and capital metrics mentioned include LCR at 116% (no material change expected from April 2026 rules) and cost of funds down ~10–11 bps q/q; they took an INR 5 billion agri provisioning item in December. Asset‑quality pointers: slippages ex‑agri ~24 bps in the quarter (vs 23 bps prior qtr, 26 bps prior year) and net credit cost (after recoveries) about ~37 bps. Distribution and deposit cadence metrics: ~9,600 branches (~6% of system), per‑branch balances ~INR 305 crore, vintage buckets of ~1,232 branches (5–10 yrs), ~1,300 (3–5 yrs) and ~2,499 (10–15 yrs), new branches on average contribute slightly north of 20% of incremental deposits, ~1.5 million new liability relationships added last quarter, ~100 million customers overall, card transactors drive ~5.5x deposit balances, and branch breakeven ~22 months (metro) / ~27 months (semi‑urban).Hdfc Bank Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| 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
Neutral
36.63
Price Trends
29.90
Negative
32.52
Negative
34.51
Negative
Market Momentum
-1.28
Negative
49.40
Neutral
74.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HDB, the sentiment is Neutral. The current price of 36.63 is above the 20-day moving average (MA) of 26.19, above the 50-day MA of 29.90, and above the 200-day MA of 34.51, indicating a neutral trend. The MACD of -1.28 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 74.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $96.78B | 9.08 | 21.64% | 9.77% | 11.82% | 3.41% | |
72 Outperform | $89.08B | 10.18 | 11.88% | 3.11% | 1.79% | 30.93% | |
69 Neutral | $101.24B | 18.92 | 15.95% | 0.85% | 10.85% | 7.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $135.66B | 21.06 | 13.09% | 3.03% | -1.78% | 0.65% | |
64 Neutral | $80.02B | 12.62 | 9.93% | 3.19% | -20.94% | -18.71% | |
57 Neutral | $108.75B | 10.79 | 9.73% | 2.31% | -2.84% | 25.48% |
* Financial Sector Average
HDB
Hdfc Bank
27.11
-5.38
-16.56%
IBN
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27.51
-3.53
-11.38%
ITUB
Itau Unibanco
8.82
3.86
77.64%
LYG
Lloyds Banking
5.55
2.10
61.01%
MFG
Mizuho Financial
8.80
4.00
83.33%
PNC
PNC Financial
220.76
66.16
42.80%
Hdfc Bank Corporate Events
HDFC Bank Discloses Unsolicited ESG Rating Assigned by Independent Rater
Apr 6, 2026
On April 3, 2026, HDFC Bank informed the New York Stock Exchange that ESG Risk Assessments Insights Limited had independently assigned the bank an ESG rating of 61 on April 2, 2026. The lender emphasized that it did not mandate or engage the firm...
HDFC Bank Flags Possible AT1, Tier II and Infrastructure Bond Issues Ahead of April 18 Board Meeting
Apr 6, 2026
On April 3, 2026, HDFC Bank Limited notified the New York Stock Exchange that its Board of Directors meeting, scheduled for April 18, 2026, may consider fresh capital-raising through various debt instruments. The board may evaluate issuing Perpetu...
HDFC Bank Posts Double-Digit Growth in Advances and Deposits for March 2026 Quarter
Apr 6, 2026
HDFC Bank reported that its average advances under management for the March 2026 quarter rose about 10% year-on-year to ₹29.64 trillion, with period-end advances under management up 10.2% to ₹30.58 trillion and gross advances up 12% to...
HDFC Bank Launches Postal Ballot E-Voting Window for Shareholders
Mar 27, 2026
HDFC Bank Limited, a major Indian private sector lender with a significant international investor base, operates across retail and corporate banking and is registered in the U.S. as a foreign private issuer under Form 20-F. The bank’s global...
HDFC Bank Reappoints Dr. Sunita Maheshwari as Independent Director for New Three-Year Term
Mar 27, 2026
On March 26, 2026, HDFC Bank’s board approved the re-appointment of Dr. (Mrs.) Sunita Maheshwari as an independent director for a further three-year term from March 30, 2026 to March 29, 2029, subject to shareholder approval. The move unders...
HDFC Bank Sets April 18 Board Meet to Approve FY26 Results and Consider Dividend
Mar 25, 2026
HDFC Bank has announced that its Board of Directors will meet on April 18, 2026, to review and approve the audited standalone and consolidated financial results for the quarter and full year ended March 31, 2026. The board will also consider recom...
HDFC Bank Moves to Reassure Investors After Chairman Resigns, Files March 19 Investor Call Transcript
Mar 19, 2026
On March 19, 2026, HDFC Bank filed a Form 6-K with the U.S. Securities and Exchange Commission, furnishing the transcript of an investor and analyst call held the same day to discuss developments following the March 18, 2026 intimation about board...
RBI Affirms Stability of HDFC Bank, Clears Transition Plan for Part-Time Chairman
Mar 19, 2026
On March 19, 2026, HDFC Bank disclosed that the Reserve Bank of India had issued a statement regarding recent developments at the bank and approved a transition arrangement for the position of part-time chairman. The RBI emphasized that HDFC Bank ...
HDFC Bank Clarifies Timing and Reasons Behind Chairman Atanu Chakraborty’s Resignation
Mar 19, 2026
HDFC Bank Limited, a major Indian private-sector lender with shares listed on the NYSE, operates across retail and corporate banking and has grown significantly following its merger with HDFC Ltd, which positioned it as the country’s second-...
HDFC Bank Chairman Atanu Chakraborty Resigns; Keki Mistry Named Interim Part-Time Chair
Mar 18, 2026
On March 18, 2026, HDFC Bank announced that part-time chairman and independent director Atanu Chakraborty resigned from the board with immediate effect, citing certain internal practices observed over the last two years that he felt were not align...
HDFC Bank Retains Top India Ratings on Key Debt and Capital Instruments
Mar 18, 2026
On March 18, 2026, HDFC Bank reported that India Ratings and Research had on March 17, 2026 assigned and affirmed credit ratings across several of the bank’s instruments, maintaining an IND AAA/Stable issuer rating and top-tier grades on its...
HDFC Bank Shareholders Clear Key Related-Party Deals With HDB Financial and HDFC Securities
Mar 17, 2026
On March 13, 2026, HDFC Bank’s shareholders approved, via postal ballot and e-voting, two ordinary resolutions to ratify material related-party transactions with group entities HDB Financial Services Limited and HDFC Securities Limited. The ...
HDFC Bank Launches Postal Ballot, Opens Remote E-Voting for Shareholders
Feb 12, 2026
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 ...
RBI Clears ICICI Group to Raise Stake in HDFC Bank Up to 9.95%
Feb 12, 2026
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 cap...
HDFC Bank Reappoints Kaizad Bharucha as Deputy Managing Director
Feb 4, 2026
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...
HDFC Bank Secures RBI Approval to Re-Appoint Kaizad Bharucha as Deputy Managing Director
Jan 21, 2026
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 recomme...
HDFC Bank Posts Strong Q3 FY26 Unaudited Results, Executive Director Bhavesh Zaveri to Retire in April
Jan 20, 2026
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 h...
HDFC Bank Sets January 17 Earnings Call on Q3 and Nine-Month FY2025 Results
Jan 13, 2026
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 communi...
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.
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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.