HDFC Bank Ltd provides commercial, transactional banking services and treasury products to wholesale and retail clients. The bank operates through three key business sections.
1. Wholesale Banking Services: This caters to a diverse client base, ranging from large, blue-chip manufacturing corporations to small and mid-sized companies and agricultural businesses.
2. Retail Banking Services: This segment provides a one-stop banking solution for individual customers' needs, including accounts, deposits, loans, cards, forex services and investment options.
3. Treasury Services: HDFC Bank's treasury operations focus on three key product areas - foreign exchange and derivatives, local currency money markets and debt securities and equities. This business manages the bank's investment portfolio, ensuring market risk control and optimizing returns.
The bank also offers specialized services under Personal Banking (such as loans, accounts, cards, forex and insurance), NRI Banking (including remittances and investments), and Wholesale Banking (targeting corporate clients, SMEs, government entities and financial institutions).
HDFC Bank was the one that pioneered the launch of the International Debit Card in India in association with VISA while also offering the Mastercard Maestro debit card.
Stock performance on the NSE (as of the latest market close) is as follows:
Current Share Price: INR 1,749.65, reflecting an increase of 0.80% (+13.85) at market close.
Market Cap (intraday): 13.351 trillion INR
Beta (5Y Monthly): 0.83, indicating relative volatility in comparison to the market.
PE Ratio (TTM): 19.80
EPS (TTM): INR 88.35
The one-year target estimate for the stock stands at 1,770.32 INR. This is a slight potential upside. The next earnings report is expected to be between January 14th and January 18th 2025.
The forward Dividend is also projected at 19.50 INR, gaining 1.12% approximately . The Ex dividend date is set for May 10th 2024.
In its Q225 earnings report, it showed strong financial performance across the major metrics:
Deposit Growth: Retail branches with 84% deposit share of the total deposits, deposit growth of 15% year on year.
Advances Under Management: Year-on-year growth of 10.2%. Showing a steady loan growth.
Net Interest Margin (NIM): NIM remained stable at 3.46%.
Gross NPA: The gross non performing assets (NPA) percentage also showed mere 1.4%. That is the best way of managing risks.
Gross Slippages: Raised up to 1.2% from its previous year.
Profit After Tax: Achieved nine percent point increase from the previous year. Profit of 16,800 INR crores
Profit Margin: For the comparable period, the bank recorded a profit before tax margin of 25.06%.
Return on Assets (ROA): With 1.71% as its ROA, the bank has fairly well managed to use the related assets.
Return on Equity (ROE): A prescription of high profitability to shareholders was further corroborated by a return on equity of 11.53%.
Revenue: Its TTM total revenue was INR 2,76,000 Cr, while net income attributable to common shareholders was INR 69,181 Cr.
Diluted EPS: The EPS for the duration was INR 88.35.
Total Cash (MRQ): The bank’s total cash at end of reported period stood at total of INR 2.66 trillion
As of October 23rd 2024, HDFC Bank Ltd held a strong market position, backed by solid valuation metrics.
Market Capitalization: The market capitalization was INR 13.25 trillion, thus establishing the bank on the major standpoint of the Indian banking industry.
Price-to-Earnings (P/E) Ratio: Trailing P/E ratio was 19.66 which show that the stock is fairly valued to its earnings.
Price-to-Sales (P/S) Ratio: The P/S ratio was 6.21, which means it is capable of generating its revenues on the basis of its current stock price.
Price-to-Book (P/B) Ratio: The P/B ratio at 1.91 show the valuation of the bank to its book value.
Enterprise Value-to-Revenue (EV/Revenue): The next ratio was the EV/Revenue ratio which turned out to be 14.22 again pointing the bank’s market value in proportion to its total revenue.
In the latest development, HDFC Bank has sanctioned the Offer for Sale of equity of HDB Financial Services, a subsidiary of the bank for the IPO that intends to mop up up to ₹12,500 crore. The issue will offer both the HDBFS IPO and the Offer for Sale, and HDFC Bank will retain HDBFS as a subsidiary even after the IPO. The form of the IPO and the terms and price at which the deal will be developed will be declared later after sec’s approvals and market condition.
HDFC also inaugurated its first branch in Singapore to provide banking services in Singapore. HDFC Bank has been granted a wholesale banking license by the Monetary Authority of Singapore (MAS) effective 15th October 2024.
HDFC Bank Ltd demonstrated the following trailing total returns compared to the S&P BSE SENSEX benchmark. As of October 24th 2024:
Year-to-Date Return: HDFC delivered a return of +3.76% behind the S&P SENSEX which achieved +10.83%.
1-Year Return: Recorded a+17.76% return, compared to a+23.99% return by the S&P SENSEX.
3-Year Return: The stock produced a+7.97% return, underperforming the index which posted a+31.64% return.
5-Year Return: Stock generated a strong return of +46.79%. Although it was lower than the SENSEX impressive +104.99% return over the same period.
This comparison shows that while HDFC Bank Ltd has delivered positive returns across all periods, it has underperformed relative to the broader market index.
The Earnings Per Share (EPS) of HDFC Bank Ltd has shown consistent growth over the years.
March 2024: ₹84.33 (+2.29% year-on-year growth)
March 2023: ₹82.44 (+20.14% growth)
March 2022: ₹68.62 (+18.84% growth)
March 2021: ₹57.74 (+16.18% growth)
This data highlights a strong uptrend in EPS, with notable double-digit growth in the years leading up to 2024, although the growth rate moderated in the most recent fiscal year.
HDFC bank is now trading towards a 1,790 resistance level that has been tested twice but getting rejected
HDFC has had its bullish momentum building up from around 1,613 low.Also a support level that has been strong to break, giving the price a bounce twice.
If the price is to break and close above the 1,790 level, we could see a rally to 2,000 in the near future. If price is to face rejection at the level, we may see it potentially dropping to the 1,620 support level.
| Year | Min Price (INR) | Max Price (INR) |
| 2023 | 1,680 | 1,770 |
| 2024 | 1,750 | 1,880 |
| 2025 | 1,850 | 2,000 |
| 2026 | 1,950 | 2,150 |
| 2027 | 2,100 | 2,300 |
| 2028 | 2,250 | 2,450 |
| 2029 | 2,350 | 2,550 |
| 2030 | 2,500 | 2,700 |
HDFC Bank Ltd continues to showcase strong financial performance, with solid growth in deposits, advances under management, and profitability, as seen in its Q2 2025 earnings report. The bank's stable net interest margin (NIM) and low non-performing asset (NPA) levels reflect effective risk management, while consistent earnings growth, demonstrated by rising EPS figures, further supports its positive outlook.
Although the stock has underperformed the broader S&P BSE SENSEX over the long term, its steady year-on-year returns and a 1-year target estimate of INR 1,770.32 suggest moderate upside potential. With a healthy balance sheet and strong market position, HDFC Bank remains well-positioned for sustained growth, making it a strong candidate for long-term investors.