HDFC Bank Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Aug 25
- 2 min read
by KarNivesh | 25 August, 2025
Overview
HDFC Bank Limited, headquartered in Mumbai, is India’s largest private sector bank and a leader in financial services. Following its landmark merger with HDFC Limited in July 2023, the bank has expanded its footprint across retail and mortgage financing. With total assets exceeding ₹43.9 trillion (March 2025), the bank operates through 9,455 branches and over 15,000 banking correspondents, serving 9.3 crore customers. Its branch mix reflects India’s financial inclusion push, with 49% in urban areas and 51% in semi-urban/rural markets.
Financial Performance & Integration: The HDFC merger has significantly boosted revenue and balance sheet size. FY2025 revenue stood at ₹4.71 trillion, up 33.7% YoY, while net profit rose 10.5% to ₹707.9 billion. Q1 FY2026 net profit was ₹170.9 billion, showing resilience despite higher provisions. Net Interest Income (NII) reached ₹320.7 billion in Q4 FY2025, with healthy Net Interest Margins of 3.7%.
Shareholding: Uniquely, HDFC Bank has zero promoter holding, with 48.8% owned by FIIs and 35.9% by DIIs, indicating strong institutional trust. Retail investors hold around 15%.
Stock Performance: Over the last year, the stock gained 20.9%, trading near ₹1,968.80, close to its 52-week high of ₹2,037.70. Five-year returns stand at 75%, outperforming the broader market. Its beta of 1.09 suggests moderate volatility.
Revenue Model & Business Segments: About 78.7% of revenue comes from interest income (loans), with the rest from fee-based services such as credit cards, wealth management, and payments. The bank has over 1.6 crore credit cards and benefits from India’s digital payments boom. Commercial/rural banking and corporate banking further diversify income sources.
HDFC Bank combines scale, profitability, and innovation. While short-term challenges exist, its diversified business model, robust asset quality, and digital focus make it a strong long-term play for investors seeking exposure to India’s growing banking sector.
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