HDFC Bank

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HDFC Bank Business Overview

HDFC Bank Limited (HDFC) is an Indian banking and financial services company headquartered in Mumbai. It is India’s largest private sector bank by assets and the world’s tenth-largest bank by market capitalization as of May 2024.
As of April 2024, HDFC Bank has a market capitalization of $145 billion, making it the third-largest company on the Indian stock exchanges. 

HDFC Bank Merger Outcome
As HDFC Bank completed one year of the merger, it was the largest merger in India’s Finance Sector. The merger’s benefits are achieved through the combined strengths of the two merged entities, the home loan expertise of erstwhile HDFC Limited, and the extensive distribution franchise of HDFC Bank.
Today, most of its branches sell home loans, including those in semi-urban and rural locations. As the nation’s growth story unfolds, HDFC Bank is prepared to reap the benefits of this historic combination.

HDFC Bank’s Future Strategy
The Indian economy is positioned for growth, driven by strong fundamentals, a favorable policy environment, and a youthful demographic with about 65 percent of the population under 35 years of age.
The bank plans to capitalize on this opportunity through consistent innovation in its offerings and technological capabilities. It focuses on these Strategies:

➢ Focusing on Micro-markets – HDFC Bank is transforming branch banking into a multi-format model based on a granular micro-market approach.
➢ Digital-led Service – HDFC Bank focuses on building a paperless retail experience through customer-centric digital journeys that make banking simple.
➢ Payments Business – Its payment business focuses on end-to-end solutions designed to cater to a wide range of customer segments.
➢ Home Loans – The Bank believes that the fundamental demand for housing will continue to be strong in the long run in India due to a favorable environment.

India is expected to have the largest working population by 2050, which is likely to give a major fillip to urbanization in the country. Eight crore families are likely to move from rural areas to cities in the country, increasing the need for housing.

This is an opportunity for the industry and HDFC Bank as it is well-positioned to fulfill the housing dreams of millions. The Bank is committed to offering home loan solutions to diverse income categories.

HDFC Bank Key Highlight

➢HDFC Bank Distribution Network
The bank’s nationwide distribution network spans metro, urban, semi-urban, and rural areas. Through our strategically positioned 8,738 branches.
It has a global footprint by way of representative offices and branches in Bahrain, Hong Kong, the UAE, and Kenya.

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➢Key Performance Metrics Q1 2025

➢ Deposits average ↑ ₹ 1.00 tn in the quarter (↑ 4.6%) ; EOP (↓ 0.03%)
✓ Average CASA ↑ ₹ 0.26 tn (↑ 3.3% ; EOP (↓ 5.0%)
✓ Average Time deposits ↑ ₹ 0.73 tn (↑ 5.2%) ; EOP (↑ 3.0%)
➢ Average advances under management ↑ ₹ 0.20 tn (↑ 0.8%) ; EOP (↓ 0.03%)
➢ Asset quality continues to remain stable; GNPA ratio at 1.33%; ex-agri at 1.16%
➢ PAT for the quarter ₹ 162 bn; RoA of 1.89% and RoE of 15.0%
➢ Consolidated EPS of ₹ 21.7 for the quarter
➢ Capital adequacy ratio is healthy at 19.3%

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HDFC Bank Financial Performance

	FY 2022	FY 2023	FY 2024
Revenue	135,936	170,754	283,649
Expense	56,557	63,042	174,196
OPM (%)	15%	18%	-16%
Net income	38,151	46,149	65,446
EPS	68.62	82.44	84.33

Note: After the merger HDFC Bank’s Financial Performance has rocketed as its net income has nearly doubled in FY 2024 as compared to FY 2022, also there is tremendous growth in EPS.

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HDFC Bank Key Financial Ratios

ROCE	PE Ratio	ROE	PEG Ratio
7.67 %	18.3	17.1 %	0.78
Book Value	R0A	Debt to equity	Piotroski score
₹ 601	1.99 %	6.81	5.00

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HDFC Bank Shareholding Pattern

	Mar 2022	Mar 2023	Mar 2024
Promoters	25.78%	25.59%	0.00%
FIIs	35.62%	32.24%	47.83%
DIIs	24.55%	28.09%	33.33%
Public	13.89%	13.91%	18.64%

Note: FIIs and DIIs have increased their Shareholding post-merger, this indicates institutional trust in the bank’s future trajectory.

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HDFC Bank Price Chart

Note: HDFC Bank Price has shown tremendous growth in the last decade.

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HDFC Bank’s Peer Comparison

Stock	PE ratio	ROCE %	OPM %
HDFC Bank	18.33	7.67	33.60
ICICI Bank	18.33	7.60	34.44
Axis Bank	13.72	7.06	62.96
Kotak Bank	19.00	7.86	15.88
IndusInd Bank	12.41	7.93	60.48
IDBI BANK	15.05	6.23	68.52
YES Bank	49.60	5.83	58.49
Industry Avg.	11.85	7.07	55.35

Note: HDFC Bank is trading on a higher multiple to its industry average.

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Disclaimer: No content on this website should be treated as investment advice. All the content offered on the website is for informational purposes only. Please contact your adviser before making an investment.

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