Stock Spotlight: HDFC Bank Limited (NYSE:HDB)
About HDFC Bank Limited
HDFC Bank Limited provides banking and financial products and services to individuals and businesses in India, Bahrain, Hong Kong, Singapore, and Dubai. The company operates through Treasury, Retail Banking, Wholesale Banking, Other Banking Business, Insurance Business, and Other segments. It offers savings, salary, current, rural, public provident fund, pension, and demat accounts; fixed and recurring deposits; and safe deposit lockers, as well as offshore accounts and deposits, and overdrafts against fixed deposits. The company also provides personal, home, car, two-wheeler, business, doctor, educational, gold, consumer, and rural loans; loans against properties, securities, mutual funds, rental receivables, and assets; loans for professionals; government sponsored programs; and loans on credit card, as well as working capital and commercial/construction equipment finance, healthcare/medical equipment, commercial vehicle finance, dealer finance, and term loans. In addition, it offers credit, debit, prepaid, forex, and kisan gold cards; payment and collection, export, import, remittance, bank guarantee, letter of credit, trade, hedging, and merchant and cash management services; and insurance and investment products. Further, the company provides short term finance, bill discounting, structured finance, export credit, loan repayment, custodial, and documents collection services; online, mobile, and phone banking services; unified payment interface, immediate payment, national electronic funds transfer, and real time gross settlement services; channel financing, vendor financing, reimbursement account, money market, derivatives, employee trusts, cash surplus corporates, tax payment, and bankers to rights/public issue services; and financial solutions for supply chain partners and agricultural customers. It operates branches and automated teller machines in various cities/towns. The company was incorporated in 1994 and is headquartered in Mumbai, India.
Source: EODHD
Key Stats
Key Stats
Source: EODHD. Data as of 26/06/26.
Price Performance
Growth Potential
- HDB is trading on the cheapest forward price to book (PB) (1.9x) and PE-multiple ratio (14.1x) in 8 years – even below Covid lows.
- Fading merger headwinds (post-HDFC merger NIM dilution driven by a high-cost wholesale borrowing book inherited from the housing finance entity has been a drag on sentiment since 2023) with management confirming that a continued reduction in borrowings would positively impact NIM (cost of funds fell -50bps vs 3Q24 to 4.4% in 4Q26 as the bank actively reduced its borrowings book), with the bank prioritising ROA stability over headline NIM while any positive development in current geopolitical tensions could see RBI resume rate cut cycle, transmitting into lower deposit costs.
- Positive demographic trends with long term positive view on the sector given increase in working population, growing disposable income and positive changes to the regulatory environment.
- Strong brand with strong national network (5,314 banking outlets across 2748 cities) with a customer base of over 49m. Market leader in credit cards (13.3m) and a leading provider of payment gateway services, leading to high quality non-fund revenues. Strong deposit base with CASA deposits (low cost deposits) comprising 39.3% of total deposits.
- Focus on digitalization to improve efficiency and reduce cost to income ratio.
- Material improvement in deposit quality with the share of deposits under INR 3 crore rising +1600bps y/y to 47% in FY26 (smaller, less volatile and more sustainable deposits that improve the quality of the liability portfolio).
Key Risks
- India is not without concerns, especially around volatility and risk (such as India’s trade deficit and being a net oil importer, adverse movements in oil prices and in the U.S dollar are potential risks).
- Intensifying competition and weak economy leading to decline in loan growth.
- Cyber security threats given high volume of transactions through internet and mobile (92% of total transactions).
- Political and regulatory changes affecting the banking legislation.
- Funding pressures for deposits and wholesale funding.
Subscribe to our newsletter
Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.
Speak to an Advisor
As AI becomes cheaper to deploy, could the next investment winners shift beyond chipmakers? Explore how the AI cost race is redefining future tech leaders.
Get the latest on Santos Limited (ASX:STO), including stock performance, technical analysis, forecasts & key insights. See if STO supports your goals.
Big Tech earnings could shake your portfolio this week. Understand how the latest results may influence global markets, the ASX and your investment strategy.
A second strategic chokepoint is under threat after Hormuz. Discover how the Bab al-Mandeb blockade could affect oil prices, inflation, interest rates and your portfolio.
This week's Stock Spotlight is NYSE-listed JPMorgan Chase & Co. About JPMorgan Chase & Co. JPMorgan Chase & Co. operates as a bank and financial holding company in the United States, rest of North America, Europe, the Middle East, Africa, the Asia Pacific, Latin America, and the Caribbean. It operates in three segments: Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management. The company offers deposit, investment and lending products, and cash management; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit cards, payment solutions, travel services, merchant offers, lifestyle benefits, auto loans, and leases to consumers and small businesses through bank branches, ATMs, and digital and telephone banking. It also provides investment banking, market-making, financing, custody, and securities products and services; corporate strategy and structure advisory, equity and debt market capital-raising, and loan origination and syndication services; cash and derivative instruments, risk management solutions, prime brokerage, clearing, and research; and fund services, liquidity and trading services, and data solutions products for large corporations, financial institutions, merchants, start-ups, small and midsized companies, local governments, municipalities, nonprofits, and commercial real estate clients. In addition, the company offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors; retirement products and services, estate planning, lending, deposits, and investment management products to high-net-worth clients; and financial transaction processing. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York. Source: EODHD Key Stats
This week's Stock Spotlight is NYSE-listed Wells Fargo & Company. About Wells Fargo & Company. Wells Fargo & Company, a financial services company, provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. It operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. The company's financial products and services includes checking and savings accounts, and credit and debit cards, as well as home, auto, personal, and small business lending services. It also provides personalized wealth management, brokerage, financial planning, lending, private banking, trust and fiduciary products and services; and financial solutions to private, family owned and public companies through products and services including banking and credit products across multiple industry sectors and municipalities, secured lending and lease products, and treasury management. In addition, it offers a suite of capital markets, banking, and financial products and services, such as corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity, and fixed income solutions, as well as sales, trading, and research capabilities services to corporate, commercial real estate, government, and institutional clients. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California. Source: EODHD Key Stats
This week's Stock Spotlight is NYSE-listed Bank of America Corp. About Bank of America Corp. Bank of America Corporation, through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, checking accounts, and investment accounts and products; credit and debit cards; residential mortgages and home equity loans; and direct and indirect loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, and underwriting and advisory services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina. Source: EODHD Key Stats
This week's Stock Spotlight is NYSE-listed Citigroup Inc. About Citigroup Inc. Citigroup Inc., a diversified financial service holding company, provides various financial products and services to consumers, corporations, governments, and institutions. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes treasury and trade solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and securities services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions. The Markets segment offers sales and trading services for equities, foreign exchange, rates, spread products, and commodities to corporate, institutional, and public sector clients; and market-making services, including asset classes, risk management solutions, financing, and prime brokerage. The Banking segment includes investment banking services comprising equity and debt capital markets-related strategic financing solutions; advisory services related to mergers and acquisitions, divestitures, restructurings, and corporate defense activities; and corporate lending consists of corporate and commercial banking. The U.S. Personal Banking segment provides proprietary and co-branded card portfolios; and traditional banking services to retail and small business customers. The Wealth segment offers financial services to high-net-worth clients through banking, lending, mortgages, investment, custody, and trust product offerings; professional industries, including law firms, consulting groups, accounting, and asset management; and affluent and high net worth clients. The company operates in North America, the United Kingdom, Japan, North and South Asia, Australia, Europe, the Middle East, and Africa. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York. Source: EODHD Key Stats
AI is driving unprecedented demand for data centres. Discover how the infrastructure powering AI is creating opportunities across energy, property and technology.
About Capstone Copper Corp. Capstone Copper Corp., a copper mining company, mines, explores for, and develops mineral properties in the United States, Chile, and Mexico. The company primarily explores copper, silver, gold, molybdenum, zinc, iron, cobalt, and other base metals. Capstone Copper Corp. is headquartered in Vancouver, Canada. Source: EODHD Key Stats
