HDFC Bank Limited (IN:HDFCBANK)
:HDFCBANK
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HDFC Bank Limited
(HDFCBANK)
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Rating:68Neutral
Price Target:
₹883.00
▲(5.88% Upside)
Action:DowngradedDate:01/20/26
The score is primarily supported by strong underlying financial performance (profitability/growth and a stable balance sheet), partially offset by cash-flow volatility. Technicals are the largest near-term drag due to clear downside momentum and the stock trading below key moving averages. Valuation is moderate with a low dividend yield, while the latest earnings call is balanced—positive on liquidity and growth intent but constrained by LDR, margin, and regulatory timing risks.
Positive Factors
High and improving margins
Sustained revenue expansion and healthy gross/net margins point to durable operating leverage and disciplined cost management. Over the next 2–6 months this underpins repeatable earnings power, supports internal capital generation for growth and provides a buffer versus credit or cyclical stresses.
Negative Factors
Volatile operating cash flow
Intermittent negative operating cash flow and declining free cash flow weaken internal funding capacity and increase sensitivity to funding markets. Persisting volatility could force greater reliance on wholesale borrowings or slower reinvestment, constraining credit growth and cash-return flexibility over months ahead.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving margins
Sustained revenue expansion and healthy gross/net margins point to durable operating leverage and disciplined cost management. Over the next 2–6 months this underpins repeatable earnings power, supports internal capital generation for growth and provides a buffer versus credit or cyclical stresses.
Read all positive factors
HDFC Bank Limited (HDFCBANK) vs. iShares MSCI India ETF (INDA)
Market Cap
₹12.47T
Dividend Yield1.1%
Average Volume (3M)788.48K
Price to Earnings (P/E)19.2
Beta (1Y)0.96
Revenue Growth1.30%
EPS Growth3.86%
CountryIN
Employees214,521
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)12.10
Shares Outstanding15,393,368,000
10 Day Avg. Volume1,030,275
30 Day Avg. Volume788,482
Financial Highlights & Ratios
PEG Ratio13.05
Price to Book (P/B)2.58
Price to Sales (P/S)3.21
P/FCF Ratio11.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,083.33Price Target Upside29.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)55.02
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:Jan 17, 2026
(Q3-2026)
| Next Earnings Date:Apr 18, 2026
Earnings Call Sentiment Neutral
The call presented a mix of constructive operational and franchise metrics (encouraging credit growth, strong retail mobilization, healthy liquidity with LCR at 116%, improving cost of funds, solid card spend and branch productivity) alongside notable challenges (timing and difficulty of reducing LDR, uneven deposit growth, stagnant margins since the merger, steady credit cost/write-off run-rate, and uncertainty from labour-code and agri regulatory matters). Management provided clear strategic priorities and a medium-term glide path, but several important levers (deposit acceleration, further reduction in borrowing costs, regulatory rule clarity) remain conditional. Overall the tone is balanced — confident on execution but cautious on near-term headwinds and timing risks.Positive Updates
Credit Growth Momentum and Guidance
Management described credit growth buildup as "extremely encouraging" and expects to outpace system loan growth in FY27. Management expects system growth next year of ~12%-13% and targets a couple of hundred basis points above that.
Negative Updates
Loan-to-Deposit / LDR Pressure and Timing Uncertainty
Management reiterated a glide path to lower LDR (targeting roughly mid-to-high 80s to low-90s by FY27) but acknowledged timing is dependent on seasonality, liquidity environment and deposit mobilization. Achieving the glide path requires materially higher deposit growth vs. peers and is sensitive to market conditions.
Read all updates
Q3-2026 Updates
Positive
Negative
Credit Growth Momentum and Guidance
Management described credit growth buildup as "extremely encouraging" and expects to outpace system loan growth in FY27. Management expects system growth next year of ~12%-13% and targets a couple of hundred basis points above that.
Read all positive updates
Company Guidance
Management reiterated a downward LDR glide‑path — guiding to ~90–96% for FY26 and ~85–90% for FY27 and saying they expect to meet committed metrics by March ’26/’27 — and reiterated they will grow loans faster than the system next year (management assumes system growth of ~12–13% and expects to be a couple-hundred bps above it). Key funding/liquidity and franchise metrics called out include an LCR of 116% in Q3, cost of funds down ~10–11 bps in the quarter, borrowings at ~13% of funding (≈7% on a yearly view), >11% market share of deposits with ~83% of deposits classified as retail, ~100 million customers and ~1.5 million new liability relationships added in the quarter. Distribution metrics: ~9,600+ branches (~6% of the country), per‑branch productivity ~INR 305 crore, breakeven ~22 months (metro) / ~27 months (semi‑urban/rural) and ~43% of branches <5 years vintage. Asset‑quality and product datapoints cited include Q3 slippages ex‑agri ~24 bps (net of recoveries ~37 bps), a one‑off agri provision of ~INR 5 billion taken in December, and card spend up ~15% YoY (3.4% QoQ) with discretionary spend +21% YoY and nondiscretionary +13% YoY; management emphasized rate discipline, segmented pricing and profitable growth and expects no material impact from the April‑2026 LCR rule changes.HDFC Bank Limited Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
85
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.05T | 4.19T | 3.52T | 1.98T | 1.60T | 1.53T |
| Gross Profit | 3.00T | 2.19T | 1.85T | 1.13T | 892.43B | 782.43B |
| EBITDA | 912.79B | 899.60B | 736.38B | 685.84B | 535.97B | 453.68B |
| Net Income | 689.19B | 673.51B | 622.66B | 495.45B | 386.00B | 325.98B |
Balance Sheet | ||||||
| Total Assets | 45.15T | 43.92T | 40.30T | 25.76T | 21.11T | 18.00T |
| Cash, Cash Equivalents and Short-Term Investments | 1.77T | 9.20T | 9.93T | 7.24T | 4.34T | 5.32T |
| Total Debt | 6.00T | 6.35T | 7.31T | 3.24T | 2.19T | 1.92T |
| Total Liabilities | 39.50T | 38.54T | 35.60T | 22.84T | 18.60T | 15.89T |
| Stockholders Equity | 5.43T | 5.22T | 4.56T | 2.89T | 2.47T | 2.10T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.13T | 968.48B | 433.58B | 554.69B | 407.80B |
| Operating Cash Flow | 0.00 | 1.20T | 1.02T | 477.20B | 581.02B | 424.76B |
| Investing Cash Flow | 0.00 | -3.72T | -3.67T | -4.39T | -3.30T | -16.81B |
| Financing Cash Flow | 0.00 | 2.42T | 3.35T | 4.17T | 2.91T | -73.21B |
HDFC Bank Limited Technical Analysis
Negative
834.00
Price Trends
864.09
Negative
921.63
Negative
952.57
Negative
Market Momentum
-22.21
Negative
49.58
Neutral
89.04
Negative
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 834 is above the 20-day moving average (MA) of 791.59, below the 50-day MA of 864.09, and below the 200-day MA of 952.57, indicating a neutral trend. The MACD of -22.21 indicates Negative momentum. The RSI at 49.58 is Neutral, neither overbought nor oversold. The STOCH value of 89.04 is Negative, 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | ₹9.85T | 10.63 | ― | 1.64% | 8.90% | 11.93% | |
81 Outperform | ₹1.43T | 7.03 | ― | 2.86% | 4.40% | -3.84% | |
76 Outperform | ₹4.20T | 14.05 | ― | 0.08% | 6.08% | -7.26% | |
75 Outperform | ₹1.28T | 6.40 | ― | 2.40% | 12.10% | 12.93% | |
72 Outperform | ₹9.47T | 19.14 | ― | 0.81% | 14.32% | 11.36% | |
68 Neutral | ₹12.47T | 19.24 | ― | 1.10% | 1.30% | 3.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
IN:HDFCBANK
HDFC Bank Limited
810.40
-109.62
-11.91%
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IN:PNB
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111.70
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IN:SBIN
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1,066.70
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HDFC Bank Limited Corporate Events
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...
HDFC Bank Posts Audio of Q3 FY2025-26 Earnings Call for Investors
Jan 17, 2026
HDFC Bank has announced that the audio recording of its January 17, 2026 earnings call with analysts and investors, covering the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, is no...
HDFC Bank Publishes Investor Presentation Ahead of Q3 FY26 Earnings Call
Jan 17, 2026
HDFC Bank has announced that the investor presentation for its upcoming earnings call, covering the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, has been made available on its web...
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.