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HDFC Bank

NYSE:HDB
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HDB
NYSE
₹6,176B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

HDFC Bank Limited provides a range of banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The last earnings update was 4 days ago. More info.


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HDB Share Price and Events
7 Day Returns
4.3%
NYSE:HDB
2.9%
US Banks
1.6%
US Market
1 Year Returns
16%
NYSE:HDB
-8.1%
US Banks
3.2%
US Market
HDB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HDFC Bank (HDB) 4.3% 12.3% 9.1% 16% 90.5% 184.2%
US Banks 2.9% 1.7% 15% -8.1% 50.7% 42.7%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • HDB outperformed the Banks industry which returned -8.1% over the past year.
  • HDB outperformed the Market in United States of America which returned 3.2% over the past year.
Price Volatility
HDB
Industry
5yr Volatility vs Market

HDB Value

 Is HDFC Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HDFC Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for HDFC Bank.

NYSE:HDB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 32 analysts.
= Stable Book Value * Return on Equity
= ₹621.52 * 16.9%
₹105.01
Book Value of Equity per Share Weighted future Book Value estimates from 28 analysts. ₹621.52
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HDB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 8.6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.641 (1 + (1- 35%) (34.68%))
0.856
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.856 * 8.6%)
10.09%

Discounted Cash Flow Calculation for NYSE:HDB using Excess Returns Model Model

The calculations below outline how an intrinsic value for HDFC Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:HDB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (16.9% – 10.09%) * ₹621.52)
₹42.28
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ₹42.28 / (10.09% - 2.73%)
₹574.13
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ₹621.52 + ₹574.13
₹1195.65
NYSE:HDB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NYSE:HDB represents 0.04961x of NSEI:HDFCBANK
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.04961x
Value per Share
(Listing Adjusted, USD)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 1,195.65 x 0.04961
$59.31
Value per share (USD) From above. $59.31
Current discount Discount to share price of $112.50
= -1 x ($112.50 - $59.31) / $59.31
-89.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of HDFC Bank is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HDFC Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HDFC Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HDB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in INR ₹78.87
NSEI:HDFCBANK Share Price ** NSEI (2019-03-19) in INR ₹2267.75
United States of America Banks Industry PE Ratio Median Figure of 587 Publicly-Listed Banks Companies 13.41x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HDFC Bank.

NYSE:HDB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:HDFCBANK Share Price ÷ EPS (both in INR)

= 2267.75 ÷ 78.87

28.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HDFC Bank is overvalued based on earnings compared to the US Banks industry average.
  • HDFC Bank is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does HDFC Bank's expected growth come at a high price?
Raw Data
NYSE:HDB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 33 Analysts
19.4%per year
United States of America Banks Industry PEG Ratio Median Figure of 260 Publicly-Listed Banks Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

NYSE:HDB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.75x ÷ 19.4%

1.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HDFC Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HDFC Bank's assets?
Raw Data
NYSE:HDB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in INR ₹537.12
NSEI:HDFCBANK Share Price * NSEI (2019-03-19) in INR ₹2267.75
United States of America Banks Industry PB Ratio Median Figure of 592 Publicly-Listed Banks Companies 1.26x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
NYSE:HDB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:HDFCBANK Share Price ÷ Book Value per Share (both in INR)

= 2267.75 ÷ 537.12

4.22x

* Primary Listing of HDFC Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HDFC Bank is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess HDFC Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. HDFC Bank has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HDB Future Performance

 How is HDFC Bank expected to perform in the next 1 to 3 years based on estimates from 33 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HDFC Bank expected to grow at an attractive rate?
  • HDFC Bank's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • HDFC Bank's earnings growth is expected to exceed the United States of America market average.
  • HDFC Bank's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HDB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HDB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 33 Analysts 19.4%
NYSE:HDB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 33 Analysts 17.7%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.3%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HDB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 33 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HDB Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 1,121,483 393,855 1
2021-03-31 942,380 317,081 26
2020-03-31 785,202 258,325 30
2019-03-31 656,918 209,635 28
NYSE:HDB Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-09-30 561,237 -1,129,102 206,261
2018-06-30 542,574 -1,204,684 195,680
2018-03-31 523,911 -1,280,265 185,100
2017-12-31 500,618 -1,141,051 177,508
2017-09-30 477,325 -999,402 169,916
2017-06-30 459,245 -899,598 161,086
2017-03-31 441,166 -799,794 152,256
2016-12-31 422,287 -1,030,153 144,819
2016-09-30 403,409 -1,260,513 137,382
2016-06-30 388,419 -1,280,382 132,697
2016-03-31 373,429 -1,300,250 128,013
2015-12-31 355,511 -1,155,394 122,182

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HDFC Bank's earnings are expected to grow by 19.4% yearly, however this is not considered high growth (20% yearly).
  • HDFC Bank's revenue is expected to grow by 17.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HDB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 33 Analyst Estimates (S&P Global) See Below

All data from HDFC Bank Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HDB Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 144.80 144.80 144.80 1.00
2021-03-31 116.23 126.90 105.00 26.00
2020-03-31 95.02 103.19 87.70 33.00
2019-03-31 77.88 81.56 72.90 32.00
NYSE:HDB Past Financials Data
Date (Data in INR Millions) EPS *
2018-09-30 78.87
2018-06-30 75.33
2018-03-31 71.73
2017-12-31 69.02
2017-09-30 66.30
2017-06-30 63.08
2017-03-31 59.84
2016-12-31 57.09
2016-09-30 54.32
2016-06-30 52.59
2016-03-31 50.85
2015-12-31 48.94

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HDFC Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HDFC Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HDFC Bank has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HDB Past Performance

  How has HDFC Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HDFC Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HDFC Bank's year on year earnings growth rate has been positive over the past 5 years.
  • HDFC Bank's 1-year earnings growth exceeds its 5-year average (21.4% vs 18.7%)
  • HDFC Bank's earnings growth has not exceeded the US Banks industry average in the past year (21.4% vs 43.2%).
Earnings and Revenue History
HDFC Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HDFC Bank Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HDB Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 561,237.43 206,260.54 157,917.42
2018-06-30 542,574.43 195,680.39 154,645.42
2018-03-31 523,911.43 185,100.24 151,373.42
2017-12-31 500,618.03 177,508.24 150,436.11
2017-09-30 477,324.63 169,916.24 149,498.81
2017-06-30 459,245.28 161,085.99 144,722.36
2017-03-31 441,165.93 152,255.74 139,945.91
2016-12-31 422,287.24 144,818.63 133,425.66
2016-09-30 403,408.56 137,381.52 126,905.41
2016-06-30 388,418.61 132,697.42 119,112.66
2016-03-31 373,428.66 128,013.32 111,319.91
2015-12-31 355,510.60 122,181.91 109,874.66
2015-09-30 337,592.53 116,350.51 108,429.41
2015-06-30 322,081.13 111,619.71 100,749.16
2015-03-31 306,569.73 106,888.91 93,068.91
2014-12-31 293,499.02 101,394.33 92,389.64
2014-09-30 280,428.30 95,899.75 91,710.37
2014-06-30 268,615.70 91,667.30 86,867.32
2014-03-31 256,803.10 87,434.85 82,024.27
2013-12-31 245,715.58 82,208.62 82,780.37
2013-09-30 234,628.06 76,982.39 83,536.46
2013-06-30 225,093.56 72,839.39 80,552.36
2013-03-31 215,559.06 68,696.39 77,568.26
2012-12-31 203,840.59 63,691.70 76,963.27
2012-09-30 192,122.11 58,687.02 76,358.28
2012-06-30 181,872.01 55,578.62 70,772.53
2012-03-31 171,621.91 52,470.22 65,186.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HDFC Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HDFC Bank used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if HDFC Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess HDFC Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HDFC Bank has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HDB Health

 How is HDFC Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of HDFC Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HDFC Bank Company Filings, last reported 5 months ago.

NYSE:HDB Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 1,461,940.00 2,141,620.40 753,625.90
2018-06-30 1,461,940.00 2,141,620.40 753,625.90
2018-03-31 1,099,554.57 1,564,420.85 392,806.61
2017-12-31 1,099,554.57 1,564,420.85 392,806.61
2017-09-30 1,099,186.40 1,603,362.50 784,929.00
2017-06-30 1,099,186.40 1,603,362.50 784,929.00
2017-03-31 920,853.88 984,156.44 275,602.09
2016-12-31 920,853.88 984,156.44 275,602.09
2016-09-30 948,490.90 1,104,931.00 738,351.60
2016-06-30 948,490.90 1,104,931.00 738,351.60
2016-03-31 744,847.47 1,037,139.60 282,997.11
2015-12-31 744,847.47 1,037,139.60 282,997.11
2015-09-30 796,718.00 762,848.60 631,517.60
2015-06-30 796,718.00 762,848.60 631,517.60
2015-03-31 633,156.93 594,782.51 291,556.51
2014-12-31 633,156.93 594,782.51 291,556.51
2014-09-30 574,537.10 602,520.10 583,773.70
2014-06-30 574,537.10 602,520.10 583,773.70
2014-03-31 443,183.66 495,967.18 184,183.02
2013-12-31 443,183.66 495,967.18 184,183.02
2013-09-30 477,703.80 865,093.70 720,232.40
2013-06-30 477,703.80 865,093.70 720,232.40
2013-03-31 368,640.65 394,966.13 179,114.88
2012-12-31 368,640.65 394,966.13 179,114.88
2012-09-30 423,348.40 466,248.50 621,272.50
2012-06-30 423,348.40 466,248.50 621,272.50
2012-03-31 303,944.04 263,341.54 104,910.32
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • HDFC Bank has an acceptable proportion of non-loan assets held.
  • HDFC Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at HDFC Bank are broadly funded by customer deposits.
  • HDFC Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • HDFC Bank has a sufficient allowance for bad loans.
  • HDFC Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess HDFC Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HDFC Bank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HDB Dividends

 What is HDFC Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.57%
Current annual income from HDFC Bank dividends. Estimated to be 0.8% next year.
If you bought $2,000 of HDFC Bank shares you are expected to receive $11 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HDFC Bank's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • HDFC Bank's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HDB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 33 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 470 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HDB Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 24.00 1.00
2021-03-31 21.00 26.00
2020-03-31 18.09 28.00
2019-03-31 14.99 27.00
NYSE:HDB Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-05-22 13.000 0.627
2017-05-29 11.000 0.603
2016-04-22 9.500 0.747
2015-06-24 8.000 0.758
2015-04-23 8.000 0.793
2015-02-05 6.850 0.654
2015-02-04 6.850 0.639
2014-05-27 6.850 0.776
2013-06-28 5.500 0.822
2012-07-17 4.300 0.667
2011-07-07 3.300 0.671
2010-07-01 2.400 0.535
2009-06-01 2.000 0.600
2009-04-24 2.000 0.806
2009-03-20 1.700 0.835

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HDFC Bank is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • HDFC Bank is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of HDFC Bank's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of HDFC Bank's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of HDFC Bank's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess HDFC Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HDFC Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HDFC Bank has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HDB Management

 What is the CEO of HDFC Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Aditya Puri
COMPENSATION ₹96,499,621
AGE 67
TENURE AS CEO 24.5 years
CEO Bio

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 experience in the banking sector in India and abroad. He joined HDFC Bank on September 12, 1994. In addition to providing leadership to the Bank, Mr. Puri has contributed significantly to enable the Bank. Mr. Puri has led the Bank through two major mergers in the Indian banking industry, being the mergers of the Bank with Times Bank Limited and Centurion Bank of Punjab Limited. Furthermore, Mr. Puri has been the Non-Executive Chairman of HDB Financial Services Limited (which is one of the Bank’s subsidiaries) since May 1, 2016. Mr. Puri has provided outstanding leadership and has contributed significantly to enable HDFC Bank scale phenomenal heights under his stewardship. Mr. Puri was awarded the Lifetime Achievement Award by Businessworld magazine for his contribution to banking. He received numerous awards. Mr. Puri was named among the best 30 chief executive officers in the world in the Barron’s list for the years 2015 and 2017. He is an associate member of the Institute of Chartered Accountants of India (ICAI). He holds CA. He holds a bachelor’s degree in commerce from Punjab University.

CEO Compensation
  • Aditya's compensation has been consistent with company performance over the past year.
  • Aditya's remuneration is lower than average for companies of similar size in United States of America.
Management Team

Aditya Puri

TITLE
MD & Director
COMPENSATION
₹96M
AGE
67
TENURE
24.5 yrs

Sashi Jagdishan

TITLE
Chief Financial Officer
COMPENSATION
₹22M
AGE
53

Kaizad Bharucha

TITLE
Executive Director
COMPENSATION
₹43M
AGE
53

Rakesh Singh

TITLE
Group Head of Investment Banking
AGE
48

Munish Mittal

TITLE
Chief Information Officer
AGE
49

Ashima Bhat

TITLE
Head of Finance
AGE
47

Manisha Parkar

TITLE
Investor Relation Contact

Santosh Haldankar

TITLE
Chief Compliance Officer

Neeraj Jha

TITLE
Head of Corporate Communications

Parag Rao

TITLE
Country Head of Card Payment Products
AGE
52
Board of Directors Tenure

Average tenure and age of the HDFC Bank board of directors in years:

3.5
Average Tenure
61
Average Age
  • The tenure for the HDFC Bank board of directors is about average.
Board of Directors

Shyamala Gopinath

TITLE
COMPENSATION
₹2M
AGE
68
TENURE
4.2 yrs

Aditya Puri

TITLE
MD & Director
COMPENSATION
₹96M
AGE
67
TENURE
24.5 yrs

Kaizad Bharucha

TITLE
Executive Director
COMPENSATION
₹43M
AGE
53
TENURE
5.3 yrs

Keki Mistry

TITLE
Non-Executive Director
COMPENSATION
₹2M
AGE
63
TENURE
26.2 yrs

Umesh Sarangi

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
66
TENURE
3 yrs

Srikanth Nadhamuni

TITLE
Non-Executive Director
COMPENSATION
₹2M
AGE
54
TENURE
2.5 yrs

Sanjiv Sachar

TITLE
Additional Director
AGE
61
TENURE
0.7 yrs

Ranga Ranganath

TITLE
Additional Independent Director
AGE
55
TENURE
0.2 yrs

Malay Patel

TITLE
Independent Non-Executive Director
COMPENSATION
₹3M
AGE
40
TENURE
4 yrs

Sandeep Parekh

TITLE
Additional Independent Director
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess HDFC Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HDFC Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HDB News

Simply Wall St News

HDB Company Info

Description

HDFC Bank Limited provides a range of banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company operates in Treasury, Retail Banking, Wholesale Banking, and Other Banking Business segments. It accepts savings accounts, salary accounts, current accounts, fixed and recurring deposits, demat accounts, safe deposit lockers, and rural accounts, as well as offshore accounts and deposits. The company also offers personal, business, home, consumer durable, car, two wheeler, gold, educational, rural, and term loans; loans for professionals; loans against property, securities, and assets; overdrafts; government sponsored programs; and working capital, healthcare, channel, short term, structured, dealer, and vendor finance, as well as agricultural lending. In addition, it provides credit, debit, and prepaid cards; private banking services; export, import, remittance, bank guarantees, and letter of credit services, as well as merchant and cash management services; life, health, motor, travel, and home insurance products; and investment products, such as mutual funds, equities and derivatives, IPOs, and bonds. Further, the company offers bill discounting, real time gross settlement, bankers to right/public issue, forex, money market, employees trusts, and tax collection services; and investment banking services in the areas of project appraisal, structured finance, loan syndication, debt capital markets, equity placement, mergers and acquisitions, corporate advisory, and capital market advisory services. Additionally, it provides correspondent banking, settlement, custodial, disbursement, clearing, and administrative and fiduciary support services, as well as online and mobile banking services. As of February 18, 2019, the company had 5,000 branches in India. HDFC Bank Limited was founded in 1994 and is based in Mumbai, India.

Details
Name: HDFC Bank Limited
HDB
Exchange: NYSE
Founded: 1994
₹89,471,619,918
2,723,306,610
Website: http://www.hdfcbank.com
Address: HDFC Bank Limited
HDFC Bank House,
Senapati Bapat Marg,
Mumbai,
Maharashtra, 400013,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI HDFCBANK Equity Shares National Stock Exchange of India IN INR 08. Nov 1995
BSE 500180 Equity Shares Mumbai Stock Exchange IN INR 08. Nov 1995
NYSE HDB ADS EACH REPR 3 INR10(MGT) New York Stock Exchange US USD 20. Jul 2001
BSE 600180 INR2(FOREIGN PREMIUM) Mumbai Stock Exchange IN INR 22. Jun 2015
BDL HDFCB GDR REG S Bourse de Luxembourg LU USD 01. Jun 2009
DB HDFA ADS EACH REPR 3 INR10(MGT) Deutsche Boerse AG DE EUR 20. Jul 2001
BMV HDB N ADS EACH REPR 3 INR10(MGT) Bolsa Mexicana de Valores MX MXN 20. Jul 2001
Number of employees
Current staff
Staff numbers
0
HDFC Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 23:37
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/03/15
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.