HDFC Bank Limited (IN:HDFCBANK)
:HDFCBANK
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HDFC Bank Limited
(HDFCBANK)
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Rating:69Neutral
Price Target:
₹871.00
▲(8.89% Upside)
Action:Downgraded
Date:04/21/26
The score is driven primarily by solid underlying financial health (especially cash generation) and a generally positive earnings-call outlook on growth, profitability stability, and asset quality. These strengths are tempered by weak technicals (downtrend vs key moving averages) and near-term uncertainties including margin pressure and the governance/legal overhang; valuation is supportive but not a major catalyst.
Positive Factors
Cash generation
Consistent operating and free cash flow (FCL ~0.9–1.0x net income) underpins earnings quality and funds investments, dividends, and provisioning without reliance on volatile market financing. Durable cash conversion strengthens capacity to fund loan growth, tech spend and buffers through cycles.
Negative Factors
NIM compression & funding transmission
Incomplete pass-through to deposit rates and faster asset repricing have compressed margins, a structural earnings headwind until transmission completes. Sustained NIM pressure lowers NII per loan and constrains ROA and profit conversion even as volumes grow.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating and free cash flow (FCL ~0.9–1.0x net income) underpins earnings quality and funds investments, dividends, and provisioning without reliance on volatile market financing. Durable cash conversion strengthens capacity to fund loan growth, tech spend and buffers through cycles.
Read all positive factors
HDFC Bank Limited (HDFCBANK) vs. iShares MSCI India ETF (INDA)
Market Cap
₹11.80T
Dividend Yield1.1%
Average Volume (3M)788.48K
Price to Earnings (P/E)13.8
Beta (1Y)0.94
Revenue Growth5.21%
EPS Growth6.67%
CountryIN
Employees214,521
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)47.27
Shares Outstanding15,396,332,000
10 Day Avg. Volume1,030,275
30 Day Avg. Volume788,482
Financial Highlights & Ratios
PEG Ratio1.48
Price to Book (P/B)1.92
Price to Sales (P/S)2.27
P/FCF Ratio6.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,050.00Price Target Upside31.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)54.12
Revenue Forecast (FY)₹2.09T
HDFC Bank Limited 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 makes money through (1) interest income from lending and investments and (2) fee-based and other non-interest income from banking services. Interest-based earnings are driven by the spread between what the bank earns on loans a...
HDFC Bank Limited Earnings Call Summary
Earnings Call Date:Apr 18, 2026
(Q4-2026)
| Next Earnings Date:Jul 20, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strategic strengths — accelerating loan and deposit growth, stable ROA (~1.9%), improved core cost-to-income, strong capital (19.7%), healthy asset quality (GNPA 1.15%) and meaningful digital/AI investments that are starting to deliver efficiency gains. These positives outweigh the near-term headwinds of NIM compression, modest treasury/FX revenue, a lag in third-party fee growth and an ongoing legal/regulatory overhang tied to governance and the Dubai-branch matter. Management reiterated focus on returns, quality of growth and liquidity metrics (LCR 110%–120% target), suggesting confidence in sustaining franchise strength while navigating macro and event-driven uncertainty.Positive Updates
Strong Loan Growth
Bank loan growth accelerated to 12% in FY26 (up from ~5.5% the prior year), outpacing the earlier internal estimate of 10.5%–11.5% and showing meaningful recovery in credit momentum.
Negative Updates
NIM Compression and Funding Transmission
Net interest margin declined (management attributed this to faster transmission on assets versus deposits). Deposit-rate transmission to repricing has been incomplete (~40–50 bps of expected pass-through still to materialize), and rate uncertainty (geopolitical-driven) creates NIM pressure.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Loan Growth
Bank loan growth accelerated to 12% in FY26 (up from ~5.5% the prior year), outpacing the earlier internal estimate of 10.5%–11.5% and showing meaningful recovery in credit momentum.
Read all positive updates
Company Guidance
Management’s guidance emphasized calibrated, quality growth with a focus on return on assets (ROA), loan growth and deposit growth: FY26 loans grew 12% (up from 5.5% in FY25) versus management’s earlier system estimate of 10.5–11.5% (RBI period‑end system implied ~13.5–13.9%), deposits grew 14.4% (INR 3.9 lakh crore mobilized for the year with 47% of net accretion < INR 3 crore), the bank will aim to sustain above‑system share gains while being cautious, target LCR ~110–120% (currently ~114%), maintain strong capital at 19.7%, keep asset quality (gross NPA 1.15%) with ~125 bps provisioning buffer, retain ROA around ~1.9% (FY ~1.94%, Q4 ~1.96%), drive EPS/net income (EPS +10%, net income +11%), improve efficiency (core cost‑to‑income down to 39.5% from 40.5%; cost‑to‑assets ~1.9%), and scale digital/tech advantages (100m customers, ~9,700 branches, ~60m mobile users, digital adoption 97% for payments/services and 92% for acquisition, ~$1bn tech investment, 5 AI use cases in production and 14 in development).HDFC Bank Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.05T | 4.95T | 4.19T | 3.52T | 1.98T | 1.60T |
| Gross Profit | 3.00T | 2.83T | 2.19T | 1.85T | 1.13T | 892.43B |
| EBITDA | 912.79B | 1.06T | 899.60B | 736.38B | 685.84B | 535.97B |
| Net Income | 689.19B | 760.26B | 673.51B | 622.66B | 495.45B | 386.00B |
Balance Sheet | ||||||
| Total Assets | 45.15T | 49.08T | 48.19T | 44.12T | 25.76T | 21.11T |
| Cash, Cash Equivalents and Short-Term Investments | 1.77T | 3.12T | 9.82T | 10.39T | 5.31T | 4.39T |
| Total Debt | 6.00T | 5.88T | 7.46T | 8.15T | 3.24T | 2.34T |
| Total Liabilities | 39.50T | 43.00T | 39.56T | 36.23T | 22.84T | 18.60T |
| Stockholders Equity | 5.43T | 5.86T | 7.68T | 6.95T | 2.91T | 2.50T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.64T | 1.13T | 968.48B | 433.58B | 554.69B |
| Operating Cash Flow | 0.00 | 1.68T | 1.20T | 1.02T | 477.20B | 581.02B |
| Investing Cash Flow | 0.00 | -4.34T | -3.72T | -3.67T | -4.39T | -3.30T |
| Financing Cash Flow | 0.00 | 3.27T | 2.42T | 3.35T | 4.17T | 2.91T |
HDFC Bank Limited Technical Analysis
Negative
799.90
Price Trends
787.22
Negative
861.17
Negative
923.00
Negative
Market Momentum
-9.66
Negative
45.12
Neutral
40.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HDFCBANK, the sentiment is Negative. The current price of 799.9 is above the 20-day moving average (MA) of 772.50, above the 50-day MA of 787.22, and below the 200-day MA of 923.00, indicating a bearish trend. The MACD of -9.66 indicates Negative momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 40.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HDFCBANK.
HDFC Bank Limited Risk Analysis
HDFC Bank Limited disclosed 71 risk factors in its most recent earnings report. HDFC Bank Limited 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 Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹9.07T | 14.62 | ― | 0.81% | 5.95% | 4.84% | |
69 Neutral | ₹11.80T | 13.83 | ― | 1.10% | 5.21% | 6.67% | |
69 Neutral | ₹4.00T | 14.03 | ― | 0.08% | 4.04% | -6.26% | |
69 Neutral | ₹1.37T | 6.45 | ― | 2.86% | 2.58% | -4.19% | |
68 Neutral | ₹8.76T | 11.51 | ― | 1.64% | 6.98% | 4.74% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | ₹1.18T | 6.28 | ― | 2.40% | 6.41% | -2.63% |
* Financial Sector Average
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HDFC Bank Limited Corporate Events
HDFC Bank Posts Earnings Call Audio for FY 2026 Results
Apr 18, 2026
HDFC Bank has announced that the audio recording of its earnings call with analysts and investors, discussing the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, has been uploaded to its investo...
HDFC Bank Announces Retirement of Executive Director Bhavesh Zaveri
Apr 18, 2026
HDFC Bank has announced the retirement of Executive Director Bhavesh Zaveri, effective at the close of business on April 18, 2026, with the board formally recording its appreciation for his long and dedicated service. Zaveri, who joined the bank i...
HDFC Bank Hires External Law Firms to Review Chairman’s Resignation
Mar 24, 2026
HDFC Bank said its board has approved the appointment of domestic and international external law firms to review the circumstances surrounding the resignation of part-time chairman and independent director Atanu Chakraborty. The bank clarified tha...
HDFC Bank Says Executive Dismissals Have No Material Impact
Mar 23, 2026
HDFC Bank has clarified reports that it dismissed three senior executives, stating that its Governance, Nomination and Remuneration Committee ordered an internal investigation following a decision notice from the Dubai Financial Services Authority...
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.