HDFC Bank (HDFCB)
India / Banking
Active
Issuer Summary
HDFC Bank is one of India’s largest private commercial banks, with a huge deposit-and-lending franchise including housing loans after the HDFC Ltd merger. It is a stable IG bank credit supported by a top-tier deposit base, thick capital, low non-performing loan ratios, and domestic AAA ratings. The direction is stable, but this is not a stage where pre-merger high ROA and high NIM can be applied directly; the focus is on how stably the enlarged bank can support housing loan assets with deposits. Investors should monitor NIM, funding costs, CASA, the gap between deposit growth and lending/AUM growth, borrowings reduction, NPA, credit cost, CET1, LCR/NSFR, and the PONV and write-down provisions of regulatory capital instruments.
HDFC Bank is one of India’s largest private-sector banks and should be treated as a core issuer in the Indian banking sector. As of end-March 2026, it had total assets of INR 43.649 trillion, deposits of INR 31.053 trillion, net advances of INR 29.372 trillion, and gross advances of INR 29.600 trillion. Following the merger with HDFC Ltd, the bank has taken on a stronger character as a comprehensive financial group spanning housing loans, retail, SME, corporate banking, cards, payments, asset management, insurance, and securities.
The credit conclusion is that HDFC Bank is a stable IG bank credit supported by one of the strongest deposit franchises among Indian private-sector banks, thick capital, a low non-performing loan ratio, and domestic AAA ratings. Its senior debt is easy to view as a candidate for holdings. At the same time, the investment decision should not stop at the label of a “strong bank”; investors need to separate balance-sheet optimization after the HDFC Ltd merger, the balance between loan growth and deposit growth, NIM recovery, credit costs in housing loans, unsecured retail, and SMEs, and the loss-absorption hierarchy of capital instruments.
Recent results do not impair credit quality. Standalone PAT for FY2026 was INR 746.7 billion, up 10.9% year on year, while PAT for Q4 FY26 was INR 192.2 billion, up 9.1% year on year. Q4 FY26 NIM was 3.38% on a total-assets basis and 3.53% on an interest-earning-assets basis. The bank is still being affected by its post-merger liability mix and deposit competition, but profitability remains sufficiently high for a large bank. As of end-March 2026, the Gross NPA ratio was 1.15%, or 0.91% excluding agriculture, and the Net NPA ratio was 0.38%, indicating good asset quality.
Issuer Reports
Current public reports for this issuer.