HDFC Bank
Market Cap
₹6.6t
Last Updated
2020/02/19 12:57 UTC
Data Sources
Company Financials +
Executive Summary
HDFC Bank Limited provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has HDFC Bank's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HDFCBANK has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.7%
HDFCBANK
-2.9%
IN Banks
-1.5%
IN Market
1 Year Return
16.4%
HDFCBANK
8.2%
IN Banks
10.7%
IN Market
Return vs Industry: HDFCBANK exceeded the Indian Banks industry which returned 8.2% over the past year.
Return vs Market: HDFCBANK exceeded the Indian Market which returned 10.7% over the past year.
Shareholder returns
| HDFCBANK | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | -2.9% | -1.5% |
| 30 Day | -2.2% | -4.4% | -2.7% |
| 90 Day | -4.4% | -4.3% | 1.3% |
| 1 Year | 17.4%16.4% | 8.6%8.2% | 12.7%10.7% |
| 3 Year | 79.2%75.4% | 10.7%9.5% | 22.0%15.1% |
| 5 Year | 142.0%133.2% | 10.1%6.6% | 34.5%22.0% |
Price Volatility Vs. Market
How volatile is HDFC Bank's share price compared to the market and industry in the last 5 years?
Simply Wall St News
7 months ago | Simply Wall St
What Kind Of Shareholder Owns Most HDFC Bank Limited (NSE:HDFCBANK) Stock?7 months ago | Simply Wall St
Should You Worry About HDFC Bank Limited's (NSE:HDFCBANK) CEO Pay Cheque?7 months ago | Simply Wall St
How Many HDFC Bank Limited (NSE:HDFCBANK) Shares Have Insiders Sold, In The Last Year?Valuation
Is HDFC Bank undervalued compared to its fair value and its price relative to the market?
25.55x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HDFCBANK (₹1227.2) is trading above our estimate of fair value (₹243.22)
Significantly Below Fair Value: HDFCBANK is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HDFCBANK is poor value based on its PE Ratio (25.5x) compared to the Banks industry average (18x).
PE vs Market: HDFCBANK is poor value based on its PE Ratio (25.5x) compared to the Indian market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: HDFCBANK is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: HDFCBANK is overvalued based on its PB Ratio (4x) compared to the IN Banks industry average (0.6x).
Next Steps
Future Growth
How is HDFC Bank forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
16.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HDFCBANK's forecast earnings growth (16.3% per year) is above the savings rate (6.5%).
Earnings vs Market: HDFCBANK's earnings (16.3% per year) are forecast to grow slower than the Indian market (20.6% per year).
High Growth Earnings: HDFCBANK's earnings are forecast to grow, but not significantly.
Revenue vs Market: Insufficient data to determine if HDFCBANK's revenue is forecast to grow faster than the Indian market.
High Growth Revenue: Insufficient data to determine if HDFCBANK's revenue is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HDFCBANK's Return on Equity is forecast to be low in 3 years time (18.7%).
Next Steps
Past Performance
How has HDFC Bank performed over the past 5 years?
18.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HDFCBANK has high quality earnings.
Growing Profit Margin: HDFCBANK's current net profit margins (37.6%) are higher than last year (36%).
Past Earnings Growth Analysis
Earnings Trend: HDFCBANK's earnings have grown by 18.5% per year over the past 5 years.
Accelerating Growth: HDFCBANK's earnings growth over the past year (23.3%) exceeds its 5-year average (18.5% per year).
Earnings vs Industry: HDFCBANK earnings growth over the past year (23.3%) underperformed the Banks industry 25.5%.
Return on Equity
High ROE: HDFCBANK's Return on Equity (15.6%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is HDFC Bank's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: HDFCBANK has a low level of unsold assets or inventory.
Debt Coverage by Assets: HDFCBANK's debt is not covered by short term assets (assets are 0.7x debt).
Financial Institutions Analysis
Asset Level: HDFCBANK's level of assets compared to its equity is low.
Allowance for Bad Loans: HDFCBANK has a sufficient allowance for bad loans.
Low Risk Liabilities: HDFCBANK's liabilities are made up of primarily low risk sources of funding.
Loan Level: HDFCBANK has an acceptable proportion of non-loan assets held.
Low Risk Deposits: HDFCBANK's loans are broadly funded by customer deposits.
Level of Bad Loans: HDFCBANK has an appropriate level of bad loans (1.32%)
Next Steps
Dividend
What is HDFC Bank's current dividend yield, its reliability and sustainability?
0.61%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: HDFCBANK's dividend (0.61%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).
High Dividend: HDFCBANK's dividend (0.61%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).
Stability and Growth of Payments
Stable Dividend: HDFCBANK's dividends per share have been stable in the past 10 years.
Growing Dividend: HDFCBANK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (15.6%), HDFCBANK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HDFCBANK's dividends in 3 years are forecast to be well covered by earnings (19.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Aditya Puri (68yo)
25.4yrs
Tenure
₹136,704,726
Compensation
Mr. Aditya Puri has been the Managing Director and a Director of HDFC Bank Limited since September 1994. Mr. Puri was the Chief Executive Officer of Citibank, Malaysia from 1992 to 1994. He has 45 years of ...
CEO Compensation Analysis
Compensation vs Market: Aditya's total compensation ($USD1.91M) is above average for companies of similar size in the Indian market ($USD1.11M).
Compensation vs Earnings: Aditya's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director | 25.4yrs | ₹136.70m | 0.12% ₹7.9b | |
| Chief Compliance Officer | 1.7yrs | ₹3.98m | 0.000010% ₹664.7k | |
| Executive Director | 6.2yrs | ₹58.78m | 0.037% ₹2.5b | |
| Head of Finance & Additional Director | 0.3yrs | ₹130.89m | 0.027% ₹1.8b | |
| Chief Financial Officer | 0.5yrs | no data | no data | |
| Group Head of Investment Banking | 0yrs | no data | 0.0037% ₹242.6m | |
| Chief Information Officer | 0yrs | no data | 0.0014% ₹91.1m | |
| Group Head of Business Finance | 0yrs | no data | 0.025% ₹1.6b | |
| Investor Relation Contact | 0yrs | no data | no data | |
| Head of Corporate Communications | 0yrs | no data | 0.00043% ₹28.6m |
1.1yrs
Average Tenure
54yo
Average Age
Experienced Management: HDFCBANK's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director | 25.4yrs | ₹136.70m | 0.12% ₹7.9b | |
| Executive Director | 6.2yrs | ₹58.78m | 0.037% ₹2.5b | |
| Head of Finance & Additional Director | 0.3yrs | ₹130.89m | 0.027% ₹1.8b | |
| Country Head of Wholesale Banking Operations & Cash Management Products and Additional Director | 0.3yrs | no data | 0.0073% ₹488.6m | |
| Part-time Non-Executive Chairperson | 5.1yrs | ₹6.50m | no data | |
| Additional Independent Director | 1.6yrs | ₹1.00m | no data | |
| Independent Non-Executive Director | 3.9yrs | ₹3.00m | no data | |
| Additional Independent Director | 1.1yrs | ₹250.00k | no data | |
| Independent Non-Executive Director | 4.9yrs | ₹3.95m | no data | |
| Non-Executive Director | 3.4yrs | ₹2.40m | no data |
3.7yrs
Average Tenure
55.5yo
Average Age
Experienced Board: HDFCBANK's board of directors are considered experienced (3.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HDFCBANK insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.
Top Shareholders
Company Information
HDFC Bank Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: HDFC Bank Limited
- Ticker: HDFCBANK
- Exchange: NSEI
- Founded: 1994
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: ₹6.647t
- Shares outstanding: 5.48b
- Website: https://www.hdfcbank.com
Location
- HDFC Bank Limited
- HDFC Bank House
- Senapati Bapat Marg
- Mumbai
- Maharashtra
- 400013
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500180 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Nov 1995 |
| HDFCBANK | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Nov 1995 |
| HDB | NYSE (New York Stock Exchange) | SPONSORED ADS | US | USD | Jul 2001 | |
| HDFA | DB (Deutsche Boerse AG) | SPONSORED ADS | DE | EUR | Jul 2001 | |
| HDB N | BMV (Bolsa Mexicana de Valores) | SPONSORED ADS | MX | MXN | Jul 2001 | |
| 600180 | BSE (Mumbai Stock Exchange) | INR2(FOREIGN PREMIUM) | IN | INR | Jun 2015 |
Biography
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, and Other Banking Business segments. The company accepts savings, salary, current, and Demat accounts; fixed and recurring deposits; and safe deposit lockers, and rural and pension accounts, as well as offshore accounts and deposits, overdrafts against fixed deposits and salaries, and sweep-in facilities. It also provides personal, home, car, two wheeler, three wheeler, business, educational, gold, rural, and term loans; loans against properties, assets, and securities; loans for professionals; government sponsored programs; and loans on credit card, as well as working capital and commercial/construction equipment finance, term and professional loans, healthcare/medical equipment and commercial vehicle finance, and dealer finance. In addition, the company offers credit, debit, prepaid, and forex cards; forex, premier and private banking, payment and collection, export, import, remittance, bank guarantee, letter of credit, trade, hedging, loan syndication, and merchant and cash management services; and insurance and investment products. Further, it provides short term finance, bill discounting, structured finance, export credit, documents collection, Internet and wholesale banking, mobile banking, real time gross settlement, channel financing, vendor financing, reimbursement account, money market, derivatives, employee trusts, cash surplus corporates, tax payment, and bankers to rights/public issue services, as well as financial solutions for supply chain partners and agricultural customers. As of June 30, 2019, it had 5,130 branches and 13,395 automated teller machines in 2,764 cities/towns. HDFC Bank Limited was founded in 1994 and is based in Mumbai, India.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 12:57 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.