HDB
Financial ServicesHDFC Bank Limited · Banks - Regional · $127B
What is HDFC Bank Limited?
HDFC Bank is one of India's largest private-sector banks, serving millions of retail and corporate customers across India and select international markets including Bahrain, Hong Kong, and Dubai.
HDFC Bank generates revenue across five segments: Treasury, Retail Banking, Wholesale Banking, Other Banking Business, and Unallocated operations. On the retail side, it earns interest income from a broad suite of loans — home, auto, personal, gold, and rural — alongside fees from cards and transaction services. Wholesale banking serves corporations through trade finance, loan syndication, and structured finance. The bank also distributes insurance and investment products, adding fee-based income streams alongside its core lending business.
Incorporated in 2001 and headquartered in Mumbai, India, HDFC Bank has grown into a cornerstone of India's modern banking system.
- Retail and wholesale lending across personal, home, auto, and business loan categories
- Credit, debit, prepaid, and forex card products
- Trade finance, export credit, and letter of credit services
- Digital banking via mobile, online, and UPI payment platforms
- Insurance and investment product distribution
Is HDB a Good Stock to Buy?
UQS Score rates HDB as Below Average overall, reflecting a mixed fundamental picture for this large Indian bank.
On the positive side, Valuation comes in as Attractive relative to peers, suggesting the market may not be fully pricing in the bank's franchise value. Quality and Moat both register as Neutral, indicating a stable but not standout competitive position within the global financial services landscape.
The Risk pillar is the most notable drag, rated Weak — a meaningful flag for investors who prioritize capital preservation. Growth also sits at Neutral, pointing to a lack of near-term earnings acceleration.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does HDB pay dividends?
Yes — HDFC Bank Limited pays a dividend.
HDFC Bank pays a regular dividend, which is relatively uncommon among large emerging-market banks that often prioritize capital reinvestment. The dividend reflects the bank's scale and regulatory capital position. Income-focused investors may find the payout meaningful, though the yield is modest relative to developed-market bank peers. Always verify the current dividend details on HDFC Bank's investor relations page.
When does HDB report earnings?
HDFC Bank reports earnings on a quarterly cadence, consistent with Indian listed-company disclosure requirements.
The bank's recent results have reflected the broader dynamics of India's credit cycle — balancing loan growth against asset quality pressures. Revenue trends across retail and wholesale segments have been shaped by interest rate movements and deposit competition in the Indian market.
For the most recent quarter's results and management commentary, visit HDFC Bank's official investor relations page.
HDB Price History
-27.9% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in HDFC Bank Limited?
Based on HDFC Bank Limited's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
HDB Long-term Outlook
HDFC Bank's fundamental outlook is shaped by India's long-term credit penetration story, which remains underdeveloped relative to global peers — a structural tailwind for retail and SME lending. However, the Weak Risk pillar signals that near-term headwinds, including asset quality and funding cost pressures, warrant close monitoring. The Neutral Growth profile suggests the bank is unlikely to deliver outsized earnings acceleration in the near term, even as the Attractive Valuation label indicates the current price may already reflect some of these concerns.
Growth drivers
- India's expanding middle class and rising demand for retail credit products
- Digital banking adoption driving lower-cost customer acquisition and transaction fee income
- Wholesale banking growth tied to India's infrastructure and corporate investment cycle
Key risks
- Asset quality deterioration in a rising interest rate or economic slowdown environment
- Deposit competition compressing net interest margins across the Indian banking sector
- Regulatory and currency risks inherent to emerging-market financial institutions
HDB vs Peers
HDFC Bank operates in a global peer group of large emerging- and developed-market banks, each with distinct geographic and business-model profiles.
Mizuho is a Japanese megabank with a heavy focus on corporate and investment banking, operating in a low-growth developed-market environment unlike HDFC's high-growth Indian context.
Itaú is Brazil's largest private bank, offering a useful emerging-market comparison point, though it operates in a higher-rate, higher-inflation macro environment than India.
ICICI Bank is HDFC Bank's closest domestic rival, competing directly across retail lending, digital banking, and corporate finance within the Indian market.
Frequently Asked Questions
What does HDFC Bank do?
HDFC Bank is one of India's largest private-sector banks, offering retail and wholesale banking, treasury services, and financial products. It serves individuals and businesses through branches, digital platforms, and international offices in Bahrain, Hong Kong, and Dubai. Revenue comes primarily from interest on loans and fees from cards, trade finance, and insurance distribution.
Does HDB pay dividends?
Yes, HDFC Bank pays a regular dividend. While the yield is modest compared to developed-market banks, the dividend reflects the bank's scale and capital position. Investors should check the company's investor relations page for the current dividend amount and payment schedule.
When does HDB report earnings?
HDFC Bank reports on a quarterly cadence, in line with Indian listed-company requirements. For exact reporting dates and the most recent results, refer to HDFC Bank's investor relations page rather than relying on third-party estimates.
Is HDB a good stock to buy?
UQS Score rates HDB as Below Average overall. The Valuation pillar is Attractive, which may interest value-oriented investors, but the Weak Risk pillar is a meaningful concern. Whether HDB fits your portfolio depends on your risk tolerance and investment horizon. The full pillar breakdown is available to UQS Pro members.
Is HDB overvalued?
Based on the UQS Valuation pillar, HDB is rated Attractive — meaning the current market price appears favorable relative to the bank's fundamental profile. This does not guarantee future returns, but it suggests the stock is not trading at a premium relative to its quality and growth characteristics.
How does HDB compare to its competitors?
Among its closest peers, ICICI Bank (IBN) is HDFC Bank's most direct domestic competitor in India. Itaú Unibanco (ITUB) offers an emerging-market comparison from Brazil, while Mizuho (MFG) represents a developed-market banking model. Each operates in a different macro environment, making direct comparisons nuanced. UQS Pro members can view side-by-side pillar scores.
What is HDB's market cap bracket?
HDFC Bank is classified as a large-cap stock. It is one of the most valuable banks in Asia by market capitalization, reflecting its dominant position within India's private banking sector.
Who founded HDFC Bank?
HDFC Bank was promoted by Housing Development Finance Corporation (HDFC), one of India's leading housing finance companies. The bank received its banking license from the Reserve Bank of India and began operations in the mid-1990s. Founding context is widely available through the company's official history.
Is HDB a long-term quality investment?
As a long-term quality indicator, HDB's UQS profile is mixed. The Neutral Quality and Moat pillars suggest a stable but not exceptional franchise, while the Weak Risk pillar warrants attention over a multi-year horizon. The Attractive Valuation may provide a margin of safety, but long-term conviction depends on India's credit cycle and the bank's ability to manage asset quality.
What is the main competitive advantage of HDFC Bank?
HDFC Bank's primary competitive advantage lies in its distribution scale, brand trust, and digital banking infrastructure within India. Its large branch and ATM network, combined with a growing digital platform, allows it to serve a broad customer base across urban and rural markets — though the UQS Moat pillar rates this advantage as Neutral rather than exceptional.
What sector does HDB belong to?
HDB belongs to the Financial Services sector, specifically within the commercial banking industry. As an Indian bank with international offices, it sits at the intersection of emerging-market banking and global financial services. You can explore other [top financial services stocks](/sector/financial-services) on UQS Score.
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Pro Analysis
HDB — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 21, 2026 | 54.0 | 70.8 | 44.0 | 45.2 | 21.4 | 87.0 | +0.2 |
| May 14, 2026 | 53.8 | 70.8 | 44.0 | 45.2 | 21.4 | 85.9 | +13.6 |
| May 8, 2026 | 40.2 | 25.7 | 44.0 | 39.0 | 0.0 | 100.0 | -4.3 |
| May 4, 2026 | 44.5 | 41.4 | 44.0 | 39.0 | 19.5 | 83.0 | 0.0 |
| May 1, 2026 | 44.5 | 41.4 | 44.0 | 39.1 | 19.5 | 83.0 | -0.1 |
| Apr 26, 2026 | 44.6 | 41.4 | 44.0 | 39.4 | 19.5 | 83.0 | -0.2 |
| Apr 25, 2026 | 44.8 | 41.4 | 44.0 | 40.5 | 19.5 | 83.1 | -0.4 |
| Apr 21, 2026 | 45.2 | 41.4 | 44.0 | 40.5 | 19.5 | 85.3 | +0.1 |
| Apr 18, 2026 | 45.1 | 41.4 | 44.0 | 40.6 | 19.5 | 85.0 | -2.3 |
| Apr 17, 2026 | 47.4 | 41.4 | 44.0 | 40.5 | 19.5 | 100.0 | 0.0 |
HDB — Pillar Breakdown
Quality
— 70.8/100 (25%)HDFC Bank Limited shows solid profitability with healthy returns on capital and reasonable margins.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 45.2/100 (20%)HDFC Bank Limited shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 21.4/100 (15%)HDFC Bank Limited presents elevated risk with concerns around leverage or financial stability.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 86.7/100 (15%)HDFC Bank Limited appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
Enterprise value multiple relative to sector median.
Moat
— 44/100 (25%)HDFC Bank Limited possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for HDB.
Score Composition
Financial Data
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How is the HDB UQS Score Calculated?
The UQS (Unified Quality Score) for HDFC Bank Limited is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses HDFC Bank Limited's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether HDFC Bank Limited is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.