| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 4.6x | 17.8x | Top tier | |
Growth | 84 | 122.4% | 7.1% | Top tier | |
Quality | 79 | — | — | Top tier | |
Safety | 20 | — | — | Bottom tier | |
Capital Return | 91 | — | 2.12% | Top tier | |
Momentum | 6 | -33.7% | 2.9% | Bottom tier | |
Sentiment | 50 | 2 | 3 | Around median |
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
HDFC Bank Limited operates as a diversified bank serving more than 100 million customer relationships through approximately 9,700 branches. It gathers deposits and deploys them into retail loans, mortgages, vehicle financing, personal loans, business loans, and gold loans, in addition to financing small and medium-sized enterprises and corporations. The economics of the business depend on net interest income, which is affected by asset yields and the cost of deposits and borrowings, with the low-cost CASA mix playing an important role; in Q1 FY2027, retail accounted for 52% of assets, while management is targeting a longer-term level of approximately 60%.
In FY2025, revenue increased to $2,190.1 billion from $1,853.9 billion in FY2024, an increase of 18.1%, and net income rose to $673.5 billion from $622.7 billion, an increase of 8.2%, while earnings per share climbed to 89.63 from 88.31. Compared with FY2023, which recorded revenue of $1,131.2 billion and net income of $495.4 billion, the FY2025 figures reflect a significant expansion in the bank's scale, but earnings growth remained slower than revenue growth.
In Q1 FY2027, reported profit growth was 5%, or 9.8% after adjusting for HDB gains and non-recurring provisions in the comparison period, and both rates remained below balance-sheet growth of approximately 13% to 14%. The margin was approximately 3.4%, corporate and wholesale loans grew by approximately 18%, and the largest component of the small and medium-sized enterprise segment, business banking, grew by 22.3%, while retail accounted for 52%, mortgage disbursements recorded year-over-year growth of approximately 14%, and vehicle and unsecured loan disbursements grew by approximately 20%. This composition reflects the quarter's reliance on wholesale and small and medium-sized enterprises for momentum, with retail disbursements beginning to improve, while funding costs and the deposit mix continued to pressure the margin.
The 52-week range of $22.66 to $37.45 represents a spread of approximately 65% between its endpoints, while the analyst consensus is “Neutral,” reflecting a balance between credit growth and opportunities to reduce funding costs on one hand, and margin pressure and the lawsuit on the other. The context does not provide a consensus price target or a comparable earnings multiple, so the valuation assessment is based on this wide range and the slowdown in FY2025 net income growth to 8.2% versus revenue growth of 18.1%.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Momentum came mainly from approximately 18% growth in corporate and wholesale loans and 22.3% growth in business banking. ECLGS 5.0 disbursements reached approximately INR 14,000 crore through June 30, 2026, while vehicle, personal, and business loan disbursements grew by approximately 20% annually. In contrast, reported profit growth was 5% and adjusted profit growth was 9.8%, remaining below balance-sheet growth of approximately 13% to 14%.
Management sees a long-term opportunity from reducing funding costs, but said on the July 18, 2026 call that improvement will not happen quickly. Borrowings represent approximately 11% of the mix, and replacing them with term deposits could save approximately 100 to 125 basis points on the replaced portion. The bank also aims to increase the retail mix from 52% toward approximately 60% over the longer term, because a higher-yielding asset mix could support the margin.
The CASA ratio was approximately 34% in Q1 FY2027, compared with approximately 38% after the merger and 40% before it. At the same time, the share of wholesale deposits increased from 17% to 20%, a mix that tends to cost more than current and savings accounts. The bank is relying on increasing customer numbers through approximately 9,700 branches and improving account quality, but noted that household deposit growth in the system remained in the single digits.
Automated analysis for informational purposes only — not investment advice.
The bank has more than 100 million customer relationships and approximately 9,700 branches, with approximately 40% of the branches less than five years old. Average business per branch rose to approximately INR 330 crore from INR 266 crore in 2023 and less than INR 200 crore in earlier periods. Only 14% of customers have term deposits with the bank, giving HDFC Bank an opportunity to increase its wallet share within the existing base.
On August 14, 2026, a class-action lawsuit was filed alleging that HDFC Bank made misleading statements, concealed material facts, and disguised payments as marketing expenses; these remain unresolved allegations in the provided information. From a regulatory perspective, the expected credit loss methodology takes effect on April 1, 2027 and includes a minimum provision of 1% for Stage 1 unsecured assets and 5% for Stage 2. Management says current provisions are sufficient and that the ongoing impact will not be material, but it expects some increase in credit costs.
Management said on July 18, 2026 that the bank is redesigning digital journeys and analytics and preparing several GenAI-based pilot programs to enter production during FY2027. Expected uses include improving operations and reducing product and service delivery times, alongside using artificial intelligence to strengthen security defenses. On August 6, 2026, HDFC Bank was named among the early users of Microsoft’s new data center in Hyderabad, the company's largest center in India according to the provided report.
