Education
About Us
Working with TipRanks
Follow Us
Hdfc Bank Limited (HDB)
NYSE:HDB
Top Page
Hdfc Bank
(NYSE:HDB)
Rating:73Outperform
Price Target:―
Positive Factors
Financial Performance
Net profit surpassed expectations, indicating strong financial performance.
Loan Growth
HDFC Bank is expected to continue loan growth in the consumer space due to a well-managed mortgage base.
Merger Synergies
Synergies from the merger with HDFC Limited are expected to outweigh execution risks, enhancing the ability to tap into lower cost funding and an enlarged network for cross-selling products.
Negative Factors
Asset Quality
Asset quality deteriorated as gross NPA ratio rose to 1.42%, indicating a slight decline in asset quality.
Key Risks
The key risks include a deterioration in asset quality and weaker than expected earnings due to slower loan growth.
Loan-to-Deposit Ratio
High loan-to-deposit ratio is a near-term concern, though longer-term synergies are positive.
Hdfc Bank (HDB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$180.35B
Dividend Yield0.86%
Average Volume (3M)2.15M
Price to Earnings (P/E)23.4
Beta (1Y)0.38
Revenue Growth13.13%
EPS Growth0.54%
CountryUS
Employees214,521
SectorFinancial
Sector Strength79
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.81
Shares Outstanding2,555,971,200
10 Day Avg. Volume2,339,907
30 Day Avg. Volume2,147,920
Financial Highlights & Ratios
PEG Ratio58.43
Price to Book (P/B)3.29
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$79.50Price Target Upside3.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Hdfc Bank Business Overview & Revenue Model
Company DescriptionHDFC Bank Limited (HDB) is one of India's leading private sector banks, headquartered in Mumbai, Maharashtra. Established in 1994, it operates in the financial services sector, providing a wide range of banking products and services to individual and corporate clients. The bank's core offerings include retail banking, wholesale banking, and treasury operations, supported by a comprehensive suite of digital banking solutions. HDFC Bank is known for its robust network of branches and ATMs across India, catering to millions of customers with innovative financial solutions.
How the Company Makes MoneyHDFC Bank generates revenue primarily through interest income from its lending activities, which includes personal loans, home loans, auto loans, and credit cards. Additionally, the bank earns non-interest income through fees and commissions from services such as wealth management, insurance, and investment products. HDFC Bank also benefits from its treasury operations, which involve managing its investment portfolio and trading in government securities, foreign exchange, and derivatives. The bank's profitability is further supported by its extensive branch network and digital platforms, which facilitate customer acquisition and retention. Strategic partnerships with fintech companies and adherence to regulatory frameworks also play a crucial role in its revenue generation.
Hdfc Bank Earnings Call Summary
Earnings Call Date:Apr 19, 2025
(Q3-2025)
| % Change Since: 30.33%|
Next Earnings Date:Jul 19, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance. While the bank showed strong deposit growth and stable credit metrics, it faced significant macroeconomic challenges and pressures on margins and credit costs. The bank is strategically managing liquidity and costs, but external conditions and declining CASA ratios are constraints.Q3-2025 Updates
Positive Updates
Strong Deposit Growth
The bank reported a robust deposit growth of about 15%, outpacing loan growth and gaining market share despite challenging macro conditions.
Stable Credit Metrics
Credit parameters like slippages and gross NPA remained resilient and stable, demonstrating the institution's strength.
Strategic Liquidity Management
The bank maintained a near-neutral liquidity position in Q3 with plans to optimize borrowing costs by extinguishing INR 44 billion in bonds.
Continued Branch Expansion
Added over 1,000 new branches year-on-year, maintaining a tight control on costs with a 7% year-on-year growth in costs.
Negative Updates
Tight Macro Environment
The bank is operating in a challenging macro environment with tight liquidity, moderating urban demand, volatility, and Indian rupee depreciation.
Reduced Net Interest Margin (NIM) Pressures
NIMs remained stable but are under pressure due to tight pricing and high deposit costs; CASA ratios are also declining.
Higher Credit Costs at HDB Financials
HDB Financials saw a sharp increase in credit costs from 1.8% to 2.5% due to increased provisions and Stage 3 asset classification.
Challenges in CASA Growth
The bank faced challenges in growing CASA ratios, affecting overall margins and cost of funds.
Company Guidance
During the HDFC Bank Q3 FY'25 earnings call, several key metrics and guidance were discussed. The bank reported a robust average deposit growth of about 15%, significantly outpacing its loan growth, which saw an 8% year-on-year increase in AUM advances. Despite a challenging macroeconomic environment marked by tight liquidity, the bank has maintained stable net interest margins (NIMs) and a cost growth of just 7% year-on-year, reflecting continued productivity gains. The bank's credit to deposit (CD) ratio has been a focal point, with ongoing efforts to normalize it, supported by a liquidity position that remained nearly neutral in Q3, with occasional peaks of negative INR 2 trillion to INR 2.5 trillion. The priority sector lending (PSL) targets were met at an aggregate level, though there is a minor shortfall in certain subcategories like smaller margin farmers. The bank's provisioning coverage ratio (PCR) stood at 68% overall but was higher at 71% excluding seasonal agricultural slippages. Additionally, the bank highlighted its strategic focus on maintaining a balanced growth trajectory with sufficient capital to capture market share as the macroeconomic environment stabilizes.Hdfc Bank Financial Statement Overview
Summary
HDFC Bank exhibits strong financial health with impressive income growth and solid profitability metrics. The balance sheet is stable with manageable leverage, although significant liabilities require vigilance. Cash flow analysis is constrained by missing recent data, yet historical trends indicate effective cash management.Income Statement
HDFC Bank shows strong income growth with a robust revenue increase from 2023 to TTM. The Gross Profit Margin and Net Profit Margin are quite healthy, reflecting efficient operations with consistent profitability. The EBIT margin is substantial, indicating solid core operating performance. Revenue growth is notable, suggesting strong business momentum.85
Very Positive
Balance Sheet
The balance sheet of HDFC Bank is solid, with a reasonable Debt-to-Equity ratio showing balanced leverage. The Return on Equity is impressive, highlighting efficient use of equity to generate profits. The Equity Ratio indicates a strong equity base relative to assets, though the high total liabilities could pose potential risks.78
Positive
Cash Flow
HDFC Bank's cash flow situation is mixed. The absence of recent operating and free cash flow data limits the analysis. Historical data show positive free cash flow, but fluctuations in cash flow components suggest potential volatility. The Free Cash Flow to Net Income ratio in the past has been strong, indicating effective cash generation relative to net income.65
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.20T | 3.52T | 1.21T | 1.02T | 936.66B | 791.75B |
| Gross Profit | 2.27T | 1.85T | 1.13T | 892.43B | 777.97B | 674.12B |
| EBITDA | 740.74B | 1.05T | 685.87B | 535.98B | 453.69B | 378.64B |
| Net Income | 677.83B | 622.66B | 495.45B | 386.00B | 325.98B | 260.27B |
Balance Sheet | ||||||
| Total Assets | 42.28T | 44.12T | 25.76T | 21.11T | 17.98T | 15.96T |
| Cash, Cash Equivalents and Short-Term Investments | 2.31T | 7.15T | 7.24T | 5.99T | 5.32T | 4.13T |
| Total Debt | 6.53T | 8.09T | 3.24T | 2.19T | 1.48T | 1.47T |
| Total Liabilities | 37.10T | 36.23T | 22.84T | 18.60T | 15.82T | 14.07T |
| Stockholders Equity | 5.02T | 4.56T | 2.91T | 2.50T | 2.16T | 1.89T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 147.83B | 433.58B | 554.69B | 903.97B | 152.89B |
| Operating Cash Flow | 0.00 | 190.69B | 477.20B | 581.02B | 921.78B | 171.18B |
| Investing Cash Flow | 0.00 | -3.67T | -4.39T | -3.30T | -2.52T | -2.15T |
| Financing Cash Flow | 0.00 | 3.35T | 4.17T | 2.91T | 1.92T | 1.85T |
Hdfc Bank Technical Analysis
Positive
76.71
Price Trends
74.08
Positive
68.50
Positive
65.80
Positive
Market Momentum
0.81
Negative
60.68
Neutral
70.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HDB, the sentiment is Positive. The current price of 76.71 is above the 20-day moving average (MA) of 75.65, above the 50-day MA of 74.08, and above the 200-day MA of 65.80, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 60.68 is Neutral, neither overbought nor oversold. The STOCH value of 70.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 3 New Risks
1.
Reforms to and replacement of IBORs and certain other rates or indices may adversely affect our reputation, business, financial condition and results of operations. Q1, 2022
2.
The Scheme with HDFC Limited may be more difficult, costly or time-consuming than expected, and implementation may fail to realize the anticipated benefits of the merger and will expose us to incremental regulatory requirements. Q1, 2022
3.
Uncertainty about the Proposed Transaction may adversely affect the relationships of the Parties with their respective investors, customers, business partners and employees, whether or not the Proposed Transaction is completed. Q1, 2022
Hdfc Bank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $212.15B | 11.24 | 10.83% | 3.26% | -1.91% | -6.79% | |
77 Outperform | $119.33B | 19.63 | 17.89% | 0.71% | 22.15% | 12.13% | |
76 Outperform | $157.60B | 13.33 | 6.30% | 2.63% | 2.97% | 87.82% | |
76 Outperform | $155.04B | 13.08 | 9.18% | 1.96% | 5.39% | 20.82% | |
76 Outperform | $258.71B | 14.28 | 11.05% | 2.00% | 3.51% | 16.51% | |
73 Outperform | $180.35B | 23.39 | 14.51% | 0.86% | 13.13% | 0.54% | |
64 Neutral | $6.62B | 10.86 | 6.59% | 5.05% | 24.65% | 0.99% |
* Financial Sector Average
Performance Comparison
HDB
Hdfc Bank
76.71
10.73
16.26%
C
Citigroup
86.27
23.92
38.36%
HSBC
HSBC Holdings
60.27
18.99
46.00%
IBN
Icici Bank
33.62
4.98
17.39%
MUFG
Mitsubishi UFJ
13.73
2.89
26.66%
WFC
Wells Fargo
81.49
22.25
37.56%
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.