HDFC Bank
HDFC Bank is India's largest private-sector lender, taking deposits and lending across retail, corporate and (since absorbing parent HDFC Ltd in 2023) home loans.
- P/E ~14x
- ROE 13.6% (merger-diluted)
- 1Y return -27% vs peer -2%
- New CEO 27 Oct
- US securities lawsuits pending
Updated on 13 Oct 2026 · Data as of 12 Oct 2026
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Snapshot
- Share price
- ₹704.90
- 12 Oct 2026
- 52-week range
- ₹687.10 – ₹993.08
- All-time peak
- ₹996.42
- 30 Jul 2025 · −29.3% from peak
- Dividend yield
- 1.84%
- Price history since
- 1996
- About 30 years of prices
What's happening
The board meets on 17 October 2026 (four days from now) to approve Q2 FY27 results - not yet out. Separately, the RBI has approved Anup Bagchi (from ICICI Prudential Life) as the new MD & CEO, taking charge on 27 October 2026 as Sashidhar Jagdishan's second term ends. The transition overlaps with US securities class-action suits (multiple law firms, lead-plaintiff deadlines around 12-13 October 2026) alleging the bank disguised payments of roughly ₹450 crore to the Maharashtra State Road Development Corporation as 'marketing expenses' to induce it to park deposits at above-market rates, following a May 2026 Indian Express investigation and an internal audit said to implicate senior management including Jagdishan.
In plain terms
This is a bank, so its 'product' is simply money: it borrows cheaply (deposits) and lends it out at a margin. That margin - the net interest margin - has been shrinking, which matters more to a bank's health than almost anything else. Layered on top, the outgoing CEO's term is ending just as an internal audit and US lawsuits raise questions about how the bank won a large public-sector deposit. None of this shows up yet in asset quality (bad loans are still low), but it is a reputational and leadership-transition risk sitting alongside an ordinary margin problem.
Quarters
Last reported quarter is Q1 FY27 (June 2026): standalone net profit ₹19,060 crore, up 5% YoY; net interest income ₹33,534 crore, up 7%. Net interest margin fell to 3.26%, the lowest level the bank has reported, down from 3.38% the prior quarter, driven by funding-cost pressure. Gross advances grew 15.4% YoY and deposits 14.7-18.8% YoY (sources vary on exact figure - check Screener), so the bank kept growing volumes even as margins thinned. Gross NPA was 1.17% (vs 1.40% a year earlier but up slightly from 1.15% the preceding quarter); net NPA 0.41%. Management said cost-of-funds improvement could eventually add 40-50 bps to margin but 'is not going to change in a hurry.' Q2 FY27 (September 2026 quarter) results are due 17 October 2026 and are not yet available - do not substitute last year's Q2 (Sept 2025) numbers for this, as some wire headlines currently in circulation refer to that older quarter.
Performance
Heads-up on splits: HDFC Bank has split its shares or issued bonus shares before (most recently 2-for-1 on 26 Aug 2025, 2-for-1 on 19 Sept 2019 and 5-for-1 on 14 Jul 2011). A sudden price drop around a split date is usually just the price adjusting for the extra shares, not a crash.
Share price
−26.7% over 1 year
Returns by period
| Period | HDFC Bank | Nifty 50 | ICICI Bank |
|---|---|---|---|
| 3 months | −13.8% | −7.6% | −4.1% |
| 1 year | −26.7% | −11.3% | −2.0% |
| 3 years | −4.1% | +13.2% | +44.4% |
| 5 years | −7.5% | +24.3% | +96.6% |
₹100 invested on 12 Oct 2021 became…
- HDFC Bank₹92
- Nifty 50₹124
- ICICI Bank₹197
The stock closed at ₹704.9 on 12 October 2026, down 29.3% from its peak of ₹996.42 on 30 July 2025. HDFC Bank did a 2-for-1 stock split in August 2025, but both the peak and current price are quoted on a consistent post-split basis, so this drawdown is a genuine price decline, not a split artifact. The underperformance is broad and multi-year: 1-year return -26.66% vs Nifty -11.35% and peer ICICI Bank -2.04%; 3-year -4.13% vs Nifty +13.23% and ICICI +44.38%; 5-year -7.55% vs Nifty +24.3% and ICICI +96.59%. On every horizon shown, HDFC Bank has lagged both the market and its closest listed peer by a wide margin.
Dividend
Paid in the last 12 months
₹13.00 per share
Dividend yield
1.84%
Dividend yield is the last 12 months of dividends divided by today's share price. A 1.8% yield means every ₹100 of HDFC Bank shares paid about ₹1.8 in dividends over the past year. Past payouts can change.
Recent dividends
| Date | Per share |
|---|---|
| 19 Jun 2026 | ₹13.00 |
| 25 Jul 2025 | ₹2.50 |
| 27 Jun 2025 | ₹11.00 |
| 10 May 2024 | ₹9.75 |
| 16 May 2023 | ₹9.50 |
| 12 May 2022 | ₹7.75 |
| 29 Jun 2021 | ₹3.25 |
| 1 Aug 2019 | ₹1.25 |
Valuation
At ~14x earnings and roughly 1.8-2x book value (book value ₹390/share), HDFC Bank looks inexpensive for a bank of its scale. Why it's cheap: return on equity has structurally fallen to 13.6% since the 2023 reverse merger pulled in HDFC Ltd's lower-yielding, higher-capital home-loan book, and the market is now also pricing in leadership transition risk and the MSRDC governance allegations. Whether it is cheap depends on whether NIM stabilizes and ROE recovers towards pre-merger levels (historically closer to 17-18%) - if margin pressure persists or the governance overhang widens, the current multiple could be a fair reflection of a genuinely lower-return business, not a bargain.
Growth
Growth is volume-led, not margin-led, and the two are currently pulling in opposite directions: advances grew 15.4% YoY and deposits in the mid-to-high teens, but net interest margin fell to 3.26%, its lowest reported level. That combination - strong volumes, shrinking margins - is less durable than growth where both move together, since funding-cost pressure can eat into the benefit of balance-sheet growth before it reaches the bottom line.
Health
Asset quality is not the concern here: gross NPA of 1.17% and net NPA of 0.41% are low and have improved year-on-year. Profits are converting into reported earnings consistently (PAT up 5-11% across recent quarters). The real risk is business risk, not balance-sheet or credit risk - specifically, margin compression from merger-related funding costs, and a governance/conduct risk from the MSRDC allegations, which is about how deposits were won rather than about loan losses or cash generation.
Ownership
There is no promoter category: the July 2023 reverse merger with parent HDFC Ltd eliminated the promoter structure entirely, so pledging is not applicable. Shareholding is institutional and retail - foreign investors roughly 39%, mutual funds roughly 32%, insurers roughly 7%, domestic institutions roughly 4%, and retail roughly 17%, per secondary aggregators (Trendlyne/Pocketful-style sources) - these exact percentages are not independently verified against the bank's own filing, so check Screener or the BSE/NSE shareholding disclosure for the precise split. Not verified - whether any single marquee investor holds a notable stake; check on Screener.
The View
The one thing to watch
The Q2 FY27 results on 17 October 2026 - specifically whether NIM stabilizes above 3.26% - and any management commentary addressing the MSRDC allegations will show whether the recent de-rating is a margin story, a governance story, or both.
Strengths
- +Gross advances grew 15.4% YoY and deposits in the mid-to-high teens in Q1 FY27, meaning the bank keeps taking market share despite its size.
- +Gross NPA of 1.17% and net NPA of 0.41% remain among the lowest stress ratios in Indian banking.
- +Standalone net profit has grown every recent quarter (Q1 FY27 +5% YoY) despite margin headwinds.
- +TTM dividend raised to ₹13/share (yield 1.84%), alongside a 2:1 stock split in August 2025 that improved affordability.
Watchpoints
- !Net interest margin fell to 3.26%, its lowest reported level; management says cost-of-funds relief of 40-50 bps will take time, not arrive quickly.
- !Multiple US securities class-action suits (lead-plaintiff deadlines around 12-13 October 2026) allege ~₹450 crore in disguised payments to Maharashtra State Road Development Corporation to induce deposits, tied to a May 2026 investigative report and an internal audit implicating outgoing CEO Jagdishan.
- !Leadership transition to an external CEO, Anup Bagchi, effective 27 October 2026 - strategic continuity is untested.
- !Stock has underperformed both the Nifty and peer ICICI Bank on every horizon from 1 to 5 years (e.g., 5-year: -7.55% vs ICICI +96.59%).
How sure are we about the data? · Moderate
Q1 FY27 (June 2026) standalone results cross-checked across Business Standard and Angel One and are consistent. Screener.in consolidated ratios (P/E ~13.9-14x, P/B ~1.8-2x, ROE 13.6%, ROCE 7.02%, book value ₹390) are internally consistent but differ slightly in 52-week high/low from the verified market data supplied (993.08/687.1 vs screener's 1,020/682) - the supplied verified figures were used and the screener figures set aside as the outlier. Shareholding percentages are from secondary aggregators, not the bank's own filed pattern - not independently verified. Q2 FY27 results were not yet published as of this report; some search results returning 'Q2' profit figures referred to the September 2025 quarter (Q2 FY26), not September 2026, and were excluded to avoid conflating the two.
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Ticker Tales is not a SEBI-registered investment adviser or research analyst. This report is for learning only and is not investment advice. Data as of 12 Oct 2026.