HDFCBANK
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HDFC Bank Limited Releases Transcript of Q1 FY26 Earnings Conference Call
HDFC Bank Limited recently published the transcript of its Q1 FY26 Earnings Conference Call held on July 19, 2025. The event was attended by Mr. Sashidhar Jagdishan, Managing Director and Chief Executive Officer, Mr. Srinivasan Vaidyanathan, Chief Financial Officer, and Mr. Bhavin Lakhpatwala, Senior Executive Vice President, Finance. During the call, the management discussed the global economic volatility and its impact on the bank's operations. CEO Sashidhar Jagdishan noted, "The global situation remains pretty volatile with a weakening growth outlook amid tariff-related and geopolitical uncertainties." Despite the challenges, the management expressed optimism for the medium to long-term prospects, emphasizing the importance of enhancing customer experience and upsell strategies. CFO Srinivasan Vaidyanathan closed the call by inviting further engagement with the Investor Relations team for any additional queries. The full transcript can be accessed through the link below.
HDFC Bank Limited recently published the transcript of its Q1 FY26 Earnings Conference Call held on July 19, 2025. The event was attended by Mr. Sashidhar Jagdishan, Managing Director and Chief Executive Officer, Mr. Srinivasan Vaidyanathan, Chief Financial Officer, and Mr. Bhavin Lakhpatwala, Senior Executive Vice President, Finance. During the call, the management discussed the global economic volatility and its impact on the bank's operations. CEO Sashidhar Jagdishan noted, "The global situation remains pretty volatile with a weakening growth outlook amid tariff-related and geopolitical uncertainties." Despite the challenges, the management expressed optimism for the medium to long-term prospects, emphasizing the importance of enhancing customer experience and upsell strategies. CFO Srinivasan Vaidyanathan closed the call by inviting further engagement with the Investor Relations team for any additional queries. The full transcript can be accessed through the link below.
BREAKINGVIEWS-Top Indian bank's share sale hardly moves needle
The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.
By Shritama Bose
MUMBAI, July 22 (Reuters Breakingviews) - State Bank of India SBI.NS looks like it's about to become a more frequent capital raiser. This week the country's largest lender, which is 57%-owned by New Delhi, sold 250 billion rupees ($2.9 billion) worth of shares. The rationale was to increase its equity ratios. Yet, even though the deal is India's largest-ever secondary stock placement to institutions, it hardly moves the needle. Ideally, a company wanting to bolster its balance sheet would trim dividends first. But the government wants state-run companies to bump up these payments by 25%.
Oddly, the bank doesn't appear to need to increase its capital. At 10.8%, its common equity Tier 1 (CET1) ratio is above the regulatory minimum of 8.8%. SBI Chair C.S. Setty said in May the bank has enough "firepower" as it stands to grow its loan book by up to 8 trillion rupees ($93 billion), or 19%.
The issue seems to be that SBI's CET1 ratio is below the 14% average for the Indian banking sector and even further behind the 16% and 18% buffers at privately held peers ICICI Bank ICBK.NS and HDFC Bank HDBK.NS. Since both those rivals trade at higher multiples to book than SBI, there's some logic to wanting to catch up.
The share sale doesn't get it very far, though. SBI has some $421 billion of risk-weighted assets, so the extra $2.9 billion only takes its CET1 ratio to 11.5%.
The additional capital has another effect of reducing the lender's return on equity: apply it to the most recent financial year, and the 17% ROE, per LSEG, would drop by just under a percentage point. That would, on paper, still leave it besting HDFC's 14% showing and lagging ICICI's 18%. But both are cranking out those numbers with much higher capital. Moreover, SBI's ROE is looking harder to sustain with bank credit growing at just over 9%, its slowest pace in three years.
Perhaps Setty and his executives are comfortable with only slightly narrowing its capital gap to peers. Assuming they're not, they have two options: sell more shares or sell more assets. Earlier this year, for example, SBI offloaded a 13% stake in Yes Bank YESB.NS to Sumitomo Mitsui Financial Group 8316.T. The lender could follow that up with peddling its remaining 11% chunk in Yes, or selling or listing its general insurer and its asset management subsidiary.
That'll keep SBI and its bankers busy for a while.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
State Bank of India on July 21 said it had completed a sale of shares worth 250 billion rupees ($2.89 billion) to institutional investors. Books were covered 4.5 times, and foreign long-term investors bought 24% of the float, the lender said.
SBI priced the issue at 817 rupees per share, a 1.8% discount to the closing price of 831.70 rupees on July 16, IFR reported on July 18, citing unnamed people with knowledge of the transaction.
Demand for the transaction was led by domestic institutions, with state-backed Life Insurance Corporation of India committing 80 billion rupees, per IFR. Nomura, Marshall Wace, Millennium, HDFC Mutual Fund, Quant Mutual Fund and ICICI Prudential Mutual Fund also participated in the issue, the report added.
SBI's shares trade at a discount to peers https://www.reuters.com/graphics/BRV-BRV/egpbqabzmvq/chart.png
(Editing by Antony Currie; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.
By Shritama Bose
MUMBAI, July 22 (Reuters Breakingviews) - State Bank of India SBI.NS looks like it's about to become a more frequent capital raiser. This week the country's largest lender, which is 57%-owned by New Delhi, sold 250 billion rupees ($2.9 billion) worth of shares. The rationale was to increase its equity ratios. Yet, even though the deal is India's largest-ever secondary stock placement to institutions, it hardly moves the needle. Ideally, a company wanting to bolster its balance sheet would trim dividends first. But the government wants state-run companies to bump up these payments by 25%.
Oddly, the bank doesn't appear to need to increase its capital. At 10.8%, its common equity Tier 1 (CET1) ratio is above the regulatory minimum of 8.8%. SBI Chair C.S. Setty said in May the bank has enough "firepower" as it stands to grow its loan book by up to 8 trillion rupees ($93 billion), or 19%.
The issue seems to be that SBI's CET1 ratio is below the 14% average for the Indian banking sector and even further behind the 16% and 18% buffers at privately held peers ICICI Bank ICBK.NS and HDFC Bank HDBK.NS. Since both those rivals trade at higher multiples to book than SBI, there's some logic to wanting to catch up.
The share sale doesn't get it very far, though. SBI has some $421 billion of risk-weighted assets, so the extra $2.9 billion only takes its CET1 ratio to 11.5%.
The additional capital has another effect of reducing the lender's return on equity: apply it to the most recent financial year, and the 17% ROE, per LSEG, would drop by just under a percentage point. That would, on paper, still leave it besting HDFC's 14% showing and lagging ICICI's 18%. But both are cranking out those numbers with much higher capital. Moreover, SBI's ROE is looking harder to sustain with bank credit growing at just over 9%, its slowest pace in three years.
Perhaps Setty and his executives are comfortable with only slightly narrowing its capital gap to peers. Assuming they're not, they have two options: sell more shares or sell more assets. Earlier this year, for example, SBI offloaded a 13% stake in Yes Bank YESB.NS to Sumitomo Mitsui Financial Group 8316.T. The lender could follow that up with peddling its remaining 11% chunk in Yes, or selling or listing its general insurer and its asset management subsidiary.
That'll keep SBI and its bankers busy for a while.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
State Bank of India on July 21 said it had completed a sale of shares worth 250 billion rupees ($2.89 billion) to institutional investors. Books were covered 4.5 times, and foreign long-term investors bought 24% of the float, the lender said.
SBI priced the issue at 817 rupees per share, a 1.8% discount to the closing price of 831.70 rupees on July 16, IFR reported on July 18, citing unnamed people with knowledge of the transaction.
Demand for the transaction was led by domestic institutions, with state-backed Life Insurance Corporation of India committing 80 billion rupees, per IFR. Nomura, Marshall Wace, Millennium, HDFC Mutual Fund, Quant Mutual Fund and ICICI Prudential Mutual Fund also participated in the issue, the report added.
SBI's shares trade at a discount to peers https://www.reuters.com/graphics/BRV-BRV/egpbqabzmvq/chart.png
(Editing by Antony Currie; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
India's stock benchmarks gain on earnings-driven boost from HDFC Bank, ICICI Bank
** India's equity benchmarks Nifty 50 .NSEI and Sensex .BSESN rise 0.4% each, led by top private lenders HDFC Bank HDBK.NS and ICICI Bank ICBK.NS on strong Q1 results
** Financials .NIFTYFIN rise 1.3%, banks .NSEBANK and private banks .NIFPVTBNK gain 1% each
** HDBK gains 2%; ICBK jumps 2.5% after posting June quarter profits that beat analysts' estimates, aided by healthy loan growth
** HDBK, ICBK results aiding the rise in benchmarks on the day, but a successful trade deal with the U.S. will be critical to sustain the rally, say two analysts
** Seven of the 13 major sectors advance; small-caps .NIFSMCP100 flat, mid-caps .NIFMDCP100 dip 0.4%
** Among individual stocks, Reliance Industries RELI.NS drops 2.2% as multiple brokerages flag weakness in oil-to-chemicals and retail segments as concerns despite Q1 profit beat
** Metal stocks .NIFTYMET gain on hopes of more stimulus measures from China to aid growth momentum
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
** India's equity benchmarks Nifty 50 .NSEI and Sensex .BSESN rise 0.4% each, led by top private lenders HDFC Bank HDBK.NS and ICICI Bank ICBK.NS on strong Q1 results
** Financials .NIFTYFIN rise 1.3%, banks .NSEBANK and private banks .NIFPVTBNK gain 1% each
** HDBK gains 2%; ICBK jumps 2.5% after posting June quarter profits that beat analysts' estimates, aided by healthy loan growth
** HDBK, ICBK results aiding the rise in benchmarks on the day, but a successful trade deal with the U.S. will be critical to sustain the rally, say two analysts
** Seven of the 13 major sectors advance; small-caps .NIFSMCP100 flat, mid-caps .NIFMDCP100 dip 0.4%
** Among individual stocks, Reliance Industries RELI.NS drops 2.2% as multiple brokerages flag weakness in oil-to-chemicals and retail segments as concerns despite Q1 profit beat
** Metal stocks .NIFTYMET gain on hopes of more stimulus measures from China to aid growth momentum
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
HDFC Bank Q1 FY26 Results: Net Revenue Up 17.8% YoY, Net Profit Drops 1.3% YoY, EPS at ₹23.7
HDFC Bank Limited has released its financial results for Q1 FY26, reporting a net revenue of ₹853.5 billion, marking a 17.8% increase year-over-year and a 16.5% rise quarter-over-quarter. The bank's profit after tax for the quarter stood at ₹182 billion, with an earnings per share (EPS) of ₹23.7. Despite these gains, the bank experienced a decline in profit before tax to ₹208.5 billion, representing an 18.5% decrease from the previous quarter and an 8.3% reduction year-over-year. Additionally, HDFC Bank reported a significant increase in provisions, which rose by 301.9% quarter-over-quarter and 387.7% year-over-year, amounting to ₹153.1 billion. This was partly influenced by transaction gains of ₹69.49 billion from a partial divestment through an offer for sale in the recent IPO of its subsidiary, HDB Financial Services Ltd. The bank's average deposits grew by 16.4% year-over-year to ₹26,576 billion, while its average advances increased by 8.3% year-over-year to ₹27,423 billion. The net interest margin was reported at 3.35%. HDFC Bank's capital adequacy ratio stood at 19.9%, with a CET1 ratio of 17.4%. The outlook for HDFC Bank remains positive, with a focus on maintaining growth in key financial parameters despite the challenges posed by increased provisions.
HDFC Bank Limited has released its financial results for Q1 FY26, reporting a net revenue of ₹853.5 billion, marking a 17.8% increase year-over-year and a 16.5% rise quarter-over-quarter. The bank's profit after tax for the quarter stood at ₹182 billion, with an earnings per share (EPS) of ₹23.7. Despite these gains, the bank experienced a decline in profit before tax to ₹208.5 billion, representing an 18.5% decrease from the previous quarter and an 8.3% reduction year-over-year. Additionally, HDFC Bank reported a significant increase in provisions, which rose by 301.9% quarter-over-quarter and 387.7% year-over-year, amounting to ₹153.1 billion. This was partly influenced by transaction gains of ₹69.49 billion from a partial divestment through an offer for sale in the recent IPO of its subsidiary, HDB Financial Services Ltd. The bank's average deposits grew by 16.4% year-over-year to ₹26,576 billion, while its average advances increased by 8.3% year-over-year to ₹27,423 billion. The net interest margin was reported at 3.35%. HDFC Bank's capital adequacy ratio stood at 19.9%, with a CET1 ratio of 17.4%. The outlook for HDFC Bank remains positive, with a focus on maintaining growth in key financial parameters despite the challenges posed by increased provisions.
PREVIEW- India's HDFC Bank falls ahead of quarterly results
** HDFC Bank HDBK.NS down nearly 1% to 1,965.5 rupees, ahead of Q1 results on Saturday
** Analysts expect co to report 6.8% increase in profit
** But flag pressure on Indian banks' net interest margins (NIMs) amid an intensified rate cut cycle
** DAM Capital expects banks to report NIM decline of 10-25 bps sequentially, but says HDFC's decline could be limited
** HDFC said in a business update that its deposit growth outpaced loan growth sequentially in Q1, in-line with goals
** Jefferies says HDFC's deposit growth was 'healthy' and on track to lift loan growth towards sector average
** Rival Axis Bank down 4.8% at 1,101.6 rupees after it reported an unexpected drop in Q1 profit
(Reporting by Ananta Agarwal in Bengaluru)
** HDFC Bank HDBK.NS down nearly 1% to 1,965.5 rupees, ahead of Q1 results on Saturday
** Analysts expect co to report 6.8% increase in profit
** But flag pressure on Indian banks' net interest margins (NIMs) amid an intensified rate cut cycle
** DAM Capital expects banks to report NIM decline of 10-25 bps sequentially, but says HDFC's decline could be limited
** HDFC said in a business update that its deposit growth outpaced loan growth sequentially in Q1, in-line with goals
** Jefferies says HDFC's deposit growth was 'healthy' and on track to lift loan growth towards sector average
** Rival Axis Bank down 4.8% at 1,101.6 rupees after it reported an unexpected drop in Q1 profit
(Reporting by Ananta Agarwal in Bengaluru)
India's HDFC Bank climbs on considering issue of bonus shares
** India's top private lender HDFC Bank HDBK.NS gains as much as 1.4% to 2022.7 rupees, last up 0.7%
** Heavyweight HDBK stock is the top gainer on the benchmark Nifty 50 index .NSEI, which is down 0.15%
** Co to consider issuing bonus shares at a board meeting scheduled on July 19; it will also consider declaration of a special interim dividend
** Stock up about 13% so far in 2025
(Reporting by Manvi Pant in Bengaluru)
(([email protected]; +918447554364;))
** India's top private lender HDFC Bank HDBK.NS gains as much as 1.4% to 2022.7 rupees, last up 0.7%
** Heavyweight HDBK stock is the top gainer on the benchmark Nifty 50 index .NSEI, which is down 0.15%
** Co to consider issuing bonus shares at a board meeting scheduled on July 19; it will also consider declaration of a special interim dividend
** Stock up about 13% so far in 2025
(Reporting by Manvi Pant in Bengaluru)
(([email protected]; +918447554364;))
India's HDFC Life posts higher quarterly profit on strong group policy demand
Adds details throughout
BENGALURU, July 15 (Reuters) - India's HDFC Life Insurance HDFL.NS reported a 14% year-on-year rise in first-quarter profit on Tuesday, driven by robust demand for its group policies and a decline in claims paid.
The insurer's profit rose to 5.46 billion rupees ($63.63 million) for the three months ended June 30 from 4.78 billion rupees a year earlier.
The company's quarterly net premium income increased 16% to 144.66 billion rupees, driven by a 17% rise in single premiums and an 18.5% jump in renewal premiums.
Claims paid dropped to 86.80 billion rupees from 88.28 billion rupees last year.
Analysts said the strong growth in group insurance plans during the April-June quarter boosted premium income for insurers.
Group insurance policies cover a group of people under one contract and are generally utilised by firms for their employees.
However, growth in market- or unit-linked insurance plans (ULIPs) has started slowing after a strong last fiscal due to volatility in India's equity markets.
The blue-chip Nifty 50 .NSEI has recovered about 15% from a one-year low hit in April. However, the benchmark index is still down nearly 4.5% from record highs touched last September due to market gyrations resulting from global trade concerns and the India-Pakistan conflict in May.
ULIPs, which have lower margins, accounted for 38% of HDFC Life's overall product mix, down from 39% as of March-end.
"We anticipate a gradual shift, rather than a sharp swing in favour of traditional products over the course of the year." Managing Director and CEO, Vibha Padalkar, said in a statement.
HDFC Life's value of new business (VNB), or expected profit from new policies, rose 12.7%, while VNB margin improved slightly to 25.1% for the quarter, compared to 25% a year ago.
Its annualised premium equivalent (APE) sales, which is the annualised total value of all single- and recurring-premium policies, rose 12.5% to 32.25 billion rupees.
($1 = 85.8110 Indian rupees)
(Reporting by Nishit Navin; Editing by Sonia Cheema and Eileen Soreng)
(([email protected];))
Adds details throughout
BENGALURU, July 15 (Reuters) - India's HDFC Life Insurance HDFL.NS reported a 14% year-on-year rise in first-quarter profit on Tuesday, driven by robust demand for its group policies and a decline in claims paid.
The insurer's profit rose to 5.46 billion rupees ($63.63 million) for the three months ended June 30 from 4.78 billion rupees a year earlier.
The company's quarterly net premium income increased 16% to 144.66 billion rupees, driven by a 17% rise in single premiums and an 18.5% jump in renewal premiums.
Claims paid dropped to 86.80 billion rupees from 88.28 billion rupees last year.
Analysts said the strong growth in group insurance plans during the April-June quarter boosted premium income for insurers.
Group insurance policies cover a group of people under one contract and are generally utilised by firms for their employees.
However, growth in market- or unit-linked insurance plans (ULIPs) has started slowing after a strong last fiscal due to volatility in India's equity markets.
The blue-chip Nifty 50 .NSEI has recovered about 15% from a one-year low hit in April. However, the benchmark index is still down nearly 4.5% from record highs touched last September due to market gyrations resulting from global trade concerns and the India-Pakistan conflict in May.
ULIPs, which have lower margins, accounted for 38% of HDFC Life's overall product mix, down from 39% as of March-end.
"We anticipate a gradual shift, rather than a sharp swing in favour of traditional products over the course of the year." Managing Director and CEO, Vibha Padalkar, said in a statement.
HDFC Life's value of new business (VNB), or expected profit from new policies, rose 12.7%, while VNB margin improved slightly to 25.1% for the quarter, compared to 25% a year ago.
Its annualised premium equivalent (APE) sales, which is the annualised total value of all single- and recurring-premium policies, rose 12.5% to 32.25 billion rupees.
($1 = 85.8110 Indian rupees)
(Reporting by Nishit Navin; Editing by Sonia Cheema and Eileen Soreng)
(([email protected];))
HDFC Bank Limited Publishes Integrated Annual Report for 2024-25
HDFC Bank Limited has released its Integrated Annual Report for the year 2024-25, highlighting its financial performance and business updates. The report outlines the bank's consistent growth in its balance sheet and profitability, supported by prudent risk management and high asset quality. A significant milestone for the year was the successful merger of HDFC Limited into HDFC Bank, enhancing the bank's financial services capabilities and expanding its product offerings to include home loans, life insurance, general insurance, and asset management. This strategic move has bolstered the bank's ability to serve customers across their financial lifecycle and provided enhanced cross-selling opportunities. The bank remains committed to sustainable value creation for all stakeholders, emphasizing strong governance and integrity. The full report can be accessed through the link below.
HDFC Bank Limited has released its Integrated Annual Report for the year 2024-25, highlighting its financial performance and business updates. The report outlines the bank's consistent growth in its balance sheet and profitability, supported by prudent risk management and high asset quality. A significant milestone for the year was the successful merger of HDFC Limited into HDFC Bank, enhancing the bank's financial services capabilities and expanding its product offerings to include home loans, life insurance, general insurance, and asset management. This strategic move has bolstered the bank's ability to serve customers across their financial lifecycle and provided enhanced cross-selling opportunities. The bank remains committed to sustainable value creation for all stakeholders, emphasizing strong governance and integrity. The full report can be accessed through the link below.
Street View: HDFC Bank's loan growth trajectory getting closer to peers
July 7 (Reuters) - ** India's HDFC Bank HDBK.NS reported a 0.4% sequential growth in gross advances in Q1; 1.8% Q/Q climb in deposits
** Shares little changed on Monday in a flat market .BO
LOAN GROWTH INCHING CLOSER TO INDUSTRY AVERAGE
** Jefferies ("buy," PT: 2,340 rupees) says HDBK's Q1 loan growth has picked up, indicating bank is on track to take loan growth towards sector average by March 2026
** Citi ("buy," PT: 2,360 rupees) says while sequential advances growth was below its estimates, on-year growth trajectory is inching closer to industry average
** Bernstein ("outperform," PT: 2,300 rupees) says weak advances' growth was not a surprise as it comes amid a weak loan growth environment
** Brokerage adds that the wider loan to deposit gap is driving loan-to-deposit ratio down "faster" to lender's target
(Reporting by Kashish Tandon in Bengaluru)
((kashish.tandon[email protected]; Mobile: +91 8800437922))
July 7 (Reuters) - ** India's HDFC Bank HDBK.NS reported a 0.4% sequential growth in gross advances in Q1; 1.8% Q/Q climb in deposits
** Shares little changed on Monday in a flat market .BO
LOAN GROWTH INCHING CLOSER TO INDUSTRY AVERAGE
** Jefferies ("buy," PT: 2,340 rupees) says HDBK's Q1 loan growth has picked up, indicating bank is on track to take loan growth towards sector average by March 2026
** Citi ("buy," PT: 2,360 rupees) says while sequential advances growth was below its estimates, on-year growth trajectory is inching closer to industry average
** Bernstein ("outperform," PT: 2,300 rupees) says weak advances' growth was not a surprise as it comes amid a weak loan growth environment
** Brokerage adds that the wider loan to deposit gap is driving loan-to-deposit ratio down "faster" to lender's target
(Reporting by Kashish Tandon in Bengaluru)
((kashish.tandon[email protected]; Mobile: +91 8800437922))
HDFC Bank's deposit growth outpaces loans in first quarter
Adds more background and share move from paragraph 2
July 4 (Reuters) - India's top private lender HDFC Bank HDBK.NS said on Friday that its sequential growth in deposits outpaced loans in the first quarter.
Deposits, as of the end of the June quarter, rose 1.8% to 27.64 trillion rupees (about $324 billion) from the previous quarter, while gross advances increased 0.4% to 26.53 trillion rupees, the Mumbai-based bank said.
Shares of the lender, the heaviest on the benchmark Nifty 50 .NSEI rose 0.4% in early trade, while the Nifty 50 was little changed.
HDFC Bank merged with parent HDFC in July 2023, adding a large pool of loans to its portfolio but a much smaller volume of deposits. That put the lender under pressure to either raise more deposits or scale back loan growth.
Overall credit growth across Indian lenders has been under pressure, data from the central bank showed in March, due to a moderation in personal and credit card loans following tighter rules by the Reserve Bank of India.
($1 = 85.3700 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia Cheema)
(([email protected]; X: @MukherjeeHritam;))
Adds more background and share move from paragraph 2
July 4 (Reuters) - India's top private lender HDFC Bank HDBK.NS said on Friday that its sequential growth in deposits outpaced loans in the first quarter.
Deposits, as of the end of the June quarter, rose 1.8% to 27.64 trillion rupees (about $324 billion) from the previous quarter, while gross advances increased 0.4% to 26.53 trillion rupees, the Mumbai-based bank said.
Shares of the lender, the heaviest on the benchmark Nifty 50 .NSEI rose 0.4% in early trade, while the Nifty 50 was little changed.
HDFC Bank merged with parent HDFC in July 2023, adding a large pool of loans to its portfolio but a much smaller volume of deposits. That put the lender under pressure to either raise more deposits or scale back loan growth.
Overall credit growth across Indian lenders has been under pressure, data from the central bank showed in March, due to a moderation in personal and credit card loans following tighter rules by the Reserve Bank of India.
($1 = 85.3700 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia Cheema)
(([email protected]; X: @MukherjeeHritam;))
India's HDB Financial shines in trading debut, valuing non-bank lender at over $8 billion
Rewrites with more details, background of IPO market in India
By Hritam Mukherjee and Kashish Tandon
July 2 (Reuters) - India's HDB Financial Services HDBF.NS jumped more than 13% in its trading debut on Wednesday, notching the non-bank lender a valuation of $8.2 billion at day's high, as investors bet on long-term growth prospects in the world's most populous country.
HDB's $1.5 billion IPO is the largest in India this year so far and also the biggest ever by a non-bank lender.
The stock rose to as much as 849.85 rupees in Mumbai compared with its offer price of 740 rupees. The shares were last trading at 833.55 rupees while India's benchmark Nifty 50 index .NSEI was marginally down.
"HDB Financial, with its strong parentage, has recorded a very encouraging listing, and its performance will definitely lend more courage to IPO hopefuls to test waters of public markets," said Mahesh Ojha, assistant vice president, research and business development at Hensex Securities.
Ojha sees a "long runway for expansion" for the lender, citing "resilient fundamentals" such as low gross non-performing assets, an annual profit growth rate of 5.4% and a wide distribution network.
The firm, a unit of India's top private lender HDFC Bank HDBK.NS, gives out personal, home, vehicle and gold loans, among other offerings. It had targeted a valuation of $7.1 billion.
Demand at the IPO was boosted by qualified institutional buyers such as foreign investors and mutual funds, whose bids were 55 times the shares reserved for them.
India's IPO market is witnessing an upswing after a slow start to the year.
As many as 143 IPOs are being planned worth a potential $26 billion, according to IPO tracker PRIME Database.
Firms have raised $5.86 billion through IPOs in 2025, maintaining India's position as the world’s second-largest IPO market after the U.S., according to LSEG data.
At HDB Financial's IPO, parent HDFC Bank sold 100 billion rupees of shares last week while the firm issued fresh stock worth 25 billion rupees. In all, the IPO garnered bids worth $19 billion. HDB also raised $321 million from anchor investors such as BlackRock.
The strong response indicates renewed investor confidence in Indian equities, thanks to easing global trade tensions and a recovery in the benchmark indexes, analysts said.
(Reporting by Hritam Mukherjee and Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected]; 8800437922;))
Rewrites with more details, background of IPO market in India
By Hritam Mukherjee and Kashish Tandon
July 2 (Reuters) - India's HDB Financial Services HDBF.NS jumped more than 13% in its trading debut on Wednesday, notching the non-bank lender a valuation of $8.2 billion at day's high, as investors bet on long-term growth prospects in the world's most populous country.
HDB's $1.5 billion IPO is the largest in India this year so far and also the biggest ever by a non-bank lender.
The stock rose to as much as 849.85 rupees in Mumbai compared with its offer price of 740 rupees. The shares were last trading at 833.55 rupees while India's benchmark Nifty 50 index .NSEI was marginally down.
"HDB Financial, with its strong parentage, has recorded a very encouraging listing, and its performance will definitely lend more courage to IPO hopefuls to test waters of public markets," said Mahesh Ojha, assistant vice president, research and business development at Hensex Securities.
Ojha sees a "long runway for expansion" for the lender, citing "resilient fundamentals" such as low gross non-performing assets, an annual profit growth rate of 5.4% and a wide distribution network.
The firm, a unit of India's top private lender HDFC Bank HDBK.NS, gives out personal, home, vehicle and gold loans, among other offerings. It had targeted a valuation of $7.1 billion.
Demand at the IPO was boosted by qualified institutional buyers such as foreign investors and mutual funds, whose bids were 55 times the shares reserved for them.
India's IPO market is witnessing an upswing after a slow start to the year.
As many as 143 IPOs are being planned worth a potential $26 billion, according to IPO tracker PRIME Database.
Firms have raised $5.86 billion through IPOs in 2025, maintaining India's position as the world’s second-largest IPO market after the U.S., according to LSEG data.
At HDB Financial's IPO, parent HDFC Bank sold 100 billion rupees of shares last week while the firm issued fresh stock worth 25 billion rupees. In all, the IPO garnered bids worth $19 billion. HDB also raised $321 million from anchor investors such as BlackRock.
The strong response indicates renewed investor confidence in Indian equities, thanks to easing global trade tensions and a recovery in the benchmark indexes, analysts said.
(Reporting by Hritam Mukherjee and Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)
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HDB Financial's IPO gets $19 billion in bids as institutional buyers pile in
IPO subscribed 16.7 times over
Institutional buyers bid for 55 times reserved shares
Retail interest relatively muted, subscribed 1.4 times
Stock expected to start trading on July 2
HDB most subscribed IPO over $1 billion since 2021
By Hritam Mukherjee
June 27 (Reuters) - HDB Financial Services' $1.5 billion IPO drew bids worth $19 billion by Friday's close as institutional buyers rushed for India's largest offering so far this year, signaling investor confidence in a stock market recovery.
India's IPO market is gaining momentum after a slow start, as the stock market stabilizes following earlier volatility driven by global trade concerns.
The blue-chip Nifty 50 index .NSEI, which hit a one-year low in April, now sits just 2.4% below record highs from last year, as easing geopolitical tensions and trade fears spurred risk-on sentiment.
HDB Financial, a unit of India's biggest private lender HDFC Bank HDBK.NS, saw its issue subscribed 16.7 times over, driven by qualified institutional buyers such as foreign investors and mutual funds who bid for 55 times their reserved portion.
Non-institutional investors bid for 10 times their portion, while retail investor interest was comparatively muted, with their shares being oversubscribed just 1.4 times, exchange data showed.
The strong investor response makes HDB Financial's IPO the most subscribed offering over $1 billion since Zomato's in 2021, data from Prime Database showed.
"The response to the issue has been very encouraging, and considering the issue size signals that investors are growing increasingly confident of the local market as global trade worries ebb out," said Narendra Solanki, head of research at Anand Rathi Shares and Stock Brokers.
"The bid numbers show that the primary markets are coming back to life after a lull earlier this year, and such a response for a sizeable issue like HDB's should give IPO hopefuls in the pipeline confidence to also come forth to test waters," Solanki added.
HDB Financial' s IPO, the biggest ever by an Indian non-bank lender, was one of six offerings this week, five of which were oversubscribed in a range of 2-86 times. Earlier this week, Credila Financial Services and Pine Labs filed for IPOs.
HDFC Bank, which holds a 94% stake in HDB, sold shares worth up to 100 billion rupees, while HDB issued new shares worth 25 billion rupees. The company is targeting a valuation of up to $7.1 billion at the upper end of the 700-740 rupees price band.
The stock is expected to start trading on July 2.
HDB had already raised $392 million from anchor investors, including BlackRock funds, Life Insurance Corporation of India (LIC) LIFI.NS and Norway's sovereign wealth fund.
(Reporting by Hritam Mukherjee in Bengaluru, additional reporting by Vivek Kumar M; editing by Chris Thomas and Tasim Zahid)
(([email protected]; X: @MukherjeeHritam;))
IPO subscribed 16.7 times over
Institutional buyers bid for 55 times reserved shares
Retail interest relatively muted, subscribed 1.4 times
Stock expected to start trading on July 2
HDB most subscribed IPO over $1 billion since 2021
By Hritam Mukherjee
June 27 (Reuters) - HDB Financial Services' $1.5 billion IPO drew bids worth $19 billion by Friday's close as institutional buyers rushed for India's largest offering so far this year, signaling investor confidence in a stock market recovery.
India's IPO market is gaining momentum after a slow start, as the stock market stabilizes following earlier volatility driven by global trade concerns.
The blue-chip Nifty 50 index .NSEI, which hit a one-year low in April, now sits just 2.4% below record highs from last year, as easing geopolitical tensions and trade fears spurred risk-on sentiment.
HDB Financial, a unit of India's biggest private lender HDFC Bank HDBK.NS, saw its issue subscribed 16.7 times over, driven by qualified institutional buyers such as foreign investors and mutual funds who bid for 55 times their reserved portion.
Non-institutional investors bid for 10 times their portion, while retail investor interest was comparatively muted, with their shares being oversubscribed just 1.4 times, exchange data showed.
The strong investor response makes HDB Financial's IPO the most subscribed offering over $1 billion since Zomato's in 2021, data from Prime Database showed.
"The response to the issue has been very encouraging, and considering the issue size signals that investors are growing increasingly confident of the local market as global trade worries ebb out," said Narendra Solanki, head of research at Anand Rathi Shares and Stock Brokers.
"The bid numbers show that the primary markets are coming back to life after a lull earlier this year, and such a response for a sizeable issue like HDB's should give IPO hopefuls in the pipeline confidence to also come forth to test waters," Solanki added.
HDB Financial' s IPO, the biggest ever by an Indian non-bank lender, was one of six offerings this week, five of which were oversubscribed in a range of 2-86 times. Earlier this week, Credila Financial Services and Pine Labs filed for IPOs.
HDFC Bank, which holds a 94% stake in HDB, sold shares worth up to 100 billion rupees, while HDB issued new shares worth 25 billion rupees. The company is targeting a valuation of up to $7.1 billion at the upper end of the 700-740 rupees price band.
The stock is expected to start trading on July 2.
HDB had already raised $392 million from anchor investors, including BlackRock funds, Life Insurance Corporation of India (LIC) LIFI.NS and Norway's sovereign wealth fund.
(Reporting by Hritam Mukherjee in Bengaluru, additional reporting by Vivek Kumar M; editing by Chris Thomas and Tasim Zahid)
(([email protected]; X: @MukherjeeHritam;))
HDB Financial's $1.5 billion Indian IPO fully subscribed on second day of bidding
Adds background throughout, analyst comment in paragraph 8
By Kashish Tandon
June 26 (Reuters) - HDB Financial Services' $1.5 billion initial public offering was fully subscribed on the second day of bidding as investors lined up for India's biggest offering so far this year amid signs of a recovery in the capital market.
The non-bank lender received bids for 1.16 times the shares on offer, exchange data showed at the end of bidding on Thursday.
Top Indian private lender HDFC Bank HDBK.NS, which holds a 94% stake in HDB, is selling shares worth up to 100 billion rupees, while HDB is issuing new shares worth 25 billion rupees.
HDB set a price band of 700-740 rupees for the three-day share sale that ends on Friday. The stock is expected to start trading on exchanges on July 2.
Non-institutional investors bid for more than twice the portion set aside for them. Retail investors bid for 64% for their allotted portion, while qualified institutional buyers, such as foreign investors and mutual funds, bid for 90%.
HDB on Tuesday raised $392 million from anchor investors, including BlackRock funds, Life Insurance Corporation of India (LIC) LIFI.NS and Norway's sovereign wealth fund.
The offering comes as foreign investors return to Indian stocks after a major exodus, attracted by big-ticket block trades, which often precede a recovery in IPOs.
"The offering shows a recovery in IPO markets with sentiment improving and overall economic growth remaining resilient," said Narendra Solanki, an analyst at Anand Rathi.
The benchmark Nifty 50 .NSEI has rebounded nearly 18% from a one-year low hit in April, but still remains below record highs reached last September.
(Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman, Anil D'Silva and Sonia Cheema)
(([email protected]; 8800437922;))
Adds background throughout, analyst comment in paragraph 8
By Kashish Tandon
June 26 (Reuters) - HDB Financial Services' $1.5 billion initial public offering was fully subscribed on the second day of bidding as investors lined up for India's biggest offering so far this year amid signs of a recovery in the capital market.
The non-bank lender received bids for 1.16 times the shares on offer, exchange data showed at the end of bidding on Thursday.
Top Indian private lender HDFC Bank HDBK.NS, which holds a 94% stake in HDB, is selling shares worth up to 100 billion rupees, while HDB is issuing new shares worth 25 billion rupees.
HDB set a price band of 700-740 rupees for the three-day share sale that ends on Friday. The stock is expected to start trading on exchanges on July 2.
Non-institutional investors bid for more than twice the portion set aside for them. Retail investors bid for 64% for their allotted portion, while qualified institutional buyers, such as foreign investors and mutual funds, bid for 90%.
HDB on Tuesday raised $392 million from anchor investors, including BlackRock funds, Life Insurance Corporation of India (LIC) LIFI.NS and Norway's sovereign wealth fund.
The offering comes as foreign investors return to Indian stocks after a major exodus, attracted by big-ticket block trades, which often precede a recovery in IPOs.
"The offering shows a recovery in IPO markets with sentiment improving and overall economic growth remaining resilient," said Narendra Solanki, an analyst at Anand Rathi.
The benchmark Nifty 50 .NSEI has rebounded nearly 18% from a one-year low hit in April, but still remains below record highs reached last September.
(Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman, Anil D'Silva and Sonia Cheema)
(([email protected]; 8800437922;))
HDFC Bank Board Approves 31st AGM Date, Dividend Payment, and New Joint Statutory Auditor Appointment
HDFC Bank Limited's Board of Directors convened on June 20, 2025, to discuss and approve several key resolutions. The 31st Annual General Meeting (AGM) is scheduled for August 8, 2025, at 2:00 p.m. IST, and will be conducted through two-way video conferencing in line with the guidelines from the Ministry of Corporate Affairs and the Securities and Exchange Board of India. Additionally, a dividend of Rs. 22 per equity share, as recommended by the Board, will be paid on or after August 11, 2025, subject to shareholder approval at the AGM. The Board also appointed M/s. B S R & Co. LLP as one of the Joint Statutory Auditors for a three-year term starting FY 2025-26, replacing M/s. Price Waterhouse LLP, in compliance with Reserve Bank of India guidelines. This appointment is contingent upon shareholder approval and subsequent annual RBI approvals. The board meeting began at 9:30 a.m. and concluded at 3:25 p.m.
HDFC Bank Limited's Board of Directors convened on June 20, 2025, to discuss and approve several key resolutions. The 31st Annual General Meeting (AGM) is scheduled for August 8, 2025, at 2:00 p.m. IST, and will be conducted through two-way video conferencing in line with the guidelines from the Ministry of Corporate Affairs and the Securities and Exchange Board of India. Additionally, a dividend of Rs. 22 per equity share, as recommended by the Board, will be paid on or after August 11, 2025, subject to shareholder approval at the AGM. The Board also appointed M/s. B S R & Co. LLP as one of the Joint Statutory Auditors for a three-year term starting FY 2025-26, replacing M/s. Price Waterhouse LLP, in compliance with Reserve Bank of India guidelines. This appointment is contingent upon shareholder approval and subsequent annual RBI approvals. The board meeting began at 9:30 a.m. and concluded at 3:25 p.m.
HDB Financial Services Files Red Herring Prospectus for Upcoming IPO
HDB Financial Services Limited, a subsidiary of HDFC Bank Limited, has taken a significant step towards entering the public market by filing a Red Herring Prospectus dated June 19, 2025. The filing was made with the Registrar of Companies in Gujarat, Dadra and Nagar Haveli at Ahmedabad, signaling the company's intent to proceed with an Initial Public Offering (IPO) of its equity shares. This move marks an important milestone for HDB Financial Services as it seeks to expand its financial reach and capitalize on new market opportunities.
HDB Financial Services Limited, a subsidiary of HDFC Bank Limited, has taken a significant step towards entering the public market by filing a Red Herring Prospectus dated June 19, 2025. The filing was made with the Registrar of Companies in Gujarat, Dadra and Nagar Haveli at Ahmedabad, signaling the company's intent to proceed with an Initial Public Offering (IPO) of its equity shares. This move marks an important milestone for HDB Financial Services as it seeks to expand its financial reach and capitalize on new market opportunities.
India's HDB Financial IPO pricing not influenced by 70% premium in 'grey market', bankers say
By Siddhi Nayak, Vivek Kumar M and Bharath Rajeswaran
MUMBAI, June 20 (Reuters) - The initial public offering of India's HDB Financial has been priced based on the fundamentals of the business, unaffected by the roughly 70% premium the stock is trading at in the informal 'grey market' for unlisted securities, bankers said on Friday.
Shares in the lender will be sold in a price band of 700 rupees to 740 rupees per share ($8.06-$8.52), valuing HDB Financial at $7.1 billion at the upper end of the band. The shares were traded around 1,200 rupees to 1,250 rupees in the 'grey market'.
"This price has been determined basis extensive roadshows," said Jibi Jacob, head of equity capital markets at Jefferies India, one of the bankers to the issue.
"We have no influence on what is happening on the unlisted side," Jacob said at a press conference in Mumbai.
HDB Financial's IPO, the largest for an Indian non-banking financial company, opens for subscription on June 25, with large institutions bidding a day earlier.
The firm, which lends across segments such as personal and business loans, operates 1,747 branches nationwide. India's largest private lender, HDFC Bank HDBK.NS, holds a 94% stake in the firm.
The IPO pricing has been determined on the fundamentals of the franchise and how key peers are trading, said Sonia DasGupta, head of the investment banking division at JM Financial, another banker to the issue.
At 740 rupees per share, the price-to-book ratio, a key measure of valuation, works out to 3.72 for HDB, in line with peers such as Bajaj Finance BJFN.NS and Shriram Finance SHMF.NS.
India's red-hot IPO streak has cooled in 2025, following a blockbuster year in 2024 that saw record capital raised through new listings.
So far this year, nearly 100 firms have hit the market, raising about $4 billion, a decline from the 137 IPOs and $4.3 billion fundraise in the year-ago period, according to data compiled by LSEG.
Analysts attribute tepid retail investor demand to aggressive IPO pricing, as the Nifty 50 .NSEI trades nearly 6% below its record high from last September.
The bull run in Indian markets post the COVID-19 crisis led to valuations of unlisted firms inflating beyond fundamentals, said Arun Kejriwal, founder of Kejriwal Research and Investment Services.
"HDB's approach is a timely reminder that IPO pricing should be grounded in reality, not speculative hype," Kejriwal said.
($1 = 86.6040 Indian rupees)
Valuations comparison of HDB Financial with peers https://reut.rs/3ZFBd99
(Reporting by Siddhi Nayak and Vivek Kumar M in Mumbai and Bharath Rajeswaran in Bengaluru, additional reporting by Nishit Navin; Editing by Mrigank Dhaniwala)
(([email protected]; +91-9833024892;))
By Siddhi Nayak, Vivek Kumar M and Bharath Rajeswaran
MUMBAI, June 20 (Reuters) - The initial public offering of India's HDB Financial has been priced based on the fundamentals of the business, unaffected by the roughly 70% premium the stock is trading at in the informal 'grey market' for unlisted securities, bankers said on Friday.
Shares in the lender will be sold in a price band of 700 rupees to 740 rupees per share ($8.06-$8.52), valuing HDB Financial at $7.1 billion at the upper end of the band. The shares were traded around 1,200 rupees to 1,250 rupees in the 'grey market'.
"This price has been determined basis extensive roadshows," said Jibi Jacob, head of equity capital markets at Jefferies India, one of the bankers to the issue.
"We have no influence on what is happening on the unlisted side," Jacob said at a press conference in Mumbai.
HDB Financial's IPO, the largest for an Indian non-banking financial company, opens for subscription on June 25, with large institutions bidding a day earlier.
The firm, which lends across segments such as personal and business loans, operates 1,747 branches nationwide. India's largest private lender, HDFC Bank HDBK.NS, holds a 94% stake in the firm.
The IPO pricing has been determined on the fundamentals of the franchise and how key peers are trading, said Sonia DasGupta, head of the investment banking division at JM Financial, another banker to the issue.
At 740 rupees per share, the price-to-book ratio, a key measure of valuation, works out to 3.72 for HDB, in line with peers such as Bajaj Finance BJFN.NS and Shriram Finance SHMF.NS.
India's red-hot IPO streak has cooled in 2025, following a blockbuster year in 2024 that saw record capital raised through new listings.
So far this year, nearly 100 firms have hit the market, raising about $4 billion, a decline from the 137 IPOs and $4.3 billion fundraise in the year-ago period, according to data compiled by LSEG.
Analysts attribute tepid retail investor demand to aggressive IPO pricing, as the Nifty 50 .NSEI trades nearly 6% below its record high from last September.
The bull run in Indian markets post the COVID-19 crisis led to valuations of unlisted firms inflating beyond fundamentals, said Arun Kejriwal, founder of Kejriwal Research and Investment Services.
"HDB's approach is a timely reminder that IPO pricing should be grounded in reality, not speculative hype," Kejriwal said.
($1 = 86.6040 Indian rupees)
Valuations comparison of HDB Financial with peers https://reut.rs/3ZFBd99
(Reporting by Siddhi Nayak and Vivek Kumar M in Mumbai and Bharath Rajeswaran in Bengaluru, additional reporting by Nishit Navin; Editing by Mrigank Dhaniwala)
(([email protected]; +91-9833024892;))
India's HDB Financial to open IPO subscription for retail investors on June 25
June 19 (Reuters) - India's HDB Financial Services, a unit of private lender HDFC BankHDBK.NS, will open its initial public offering for subscription for retail investors on June 25, the non-banking financial company said on Thursday.
The IPO, which comprises fresh issue of shares worth up to 25 billion rupees ($288.25 million) and an offer for sale of shares worth 100 billion rupees, will open for subscriptions for big institutional investors or anchor investors on June 24.
($1 = 86.7300 Indian rupees)
(Reporting by Nishit Navin; Editing by Janane Venkatraman)
(([email protected];))
June 19 (Reuters) - India's HDB Financial Services, a unit of private lender HDFC BankHDBK.NS, will open its initial public offering for subscription for retail investors on June 25, the non-banking financial company said on Thursday.
The IPO, which comprises fresh issue of shares worth up to 25 billion rupees ($288.25 million) and an offer for sale of shares worth 100 billion rupees, will open for subscriptions for big institutional investors or anchor investors on June 24.
($1 = 86.7300 Indian rupees)
(Reporting by Nishit Navin; Editing by Janane Venkatraman)
(([email protected];))
India's HDFC Bank leads gains in Nifty 50; Jefferies upbeat on growth prospects
** Shares of private lender HDFC Bank HDBK.NS gain 1.1% to emerge as top gainer on the benchmark Nifty 50 index .NSEI, which is up 0.87%
** Stock top gainer on heavyweights Nifty financial services .NIFTYFIN and Nifty bank index .NSEBANK, up 0.67% and 0.53%, respectively
** Co stays among top picks for Jefferies on easing regulations, rate cuts and improvement in credit growth, after meeting with CEO and CFO
** Jefferies says HDBK management flagged that the 100 bps cut in cash reserve ratio by the central bank will aid lower lending costs and reduce costs for borrowers
** Said HDBK reiterated guidance on loan growth to be in line with the sector in FY26 and will likely be ahead in FY27
** Jefferies adds co's deposit growth continues to stay stronger than sector and should aid credit growth over two years
** Brokerage's rating on stock is "buy", target price us 2,340 rupees - reflecting a 22% upside on last close
** Stock up 9.4% YTD vs 5.5% rise in Nifty 50
(Reporting by Manvi Pant in Bengaluru)
(([email protected]; +918447554364;))
** Shares of private lender HDFC Bank HDBK.NS gain 1.1% to emerge as top gainer on the benchmark Nifty 50 index .NSEI, which is up 0.87%
** Stock top gainer on heavyweights Nifty financial services .NIFTYFIN and Nifty bank index .NSEBANK, up 0.67% and 0.53%, respectively
** Co stays among top picks for Jefferies on easing regulations, rate cuts and improvement in credit growth, after meeting with CEO and CFO
** Jefferies says HDBK management flagged that the 100 bps cut in cash reserve ratio by the central bank will aid lower lending costs and reduce costs for borrowers
** Said HDBK reiterated guidance on loan growth to be in line with the sector in FY26 and will likely be ahead in FY27
** Jefferies adds co's deposit growth continues to stay stronger than sector and should aid credit growth over two years
** Brokerage's rating on stock is "buy", target price us 2,340 rupees - reflecting a 22% upside on last close
** Stock up 9.4% YTD vs 5.5% rise in Nifty 50
(Reporting by Manvi Pant in Bengaluru)
(([email protected]; +918447554364;))
HDFC Bank Responds to Allegations from Lilavati Kirtilal Mehta Medical Trust
HDFC Bank Limited has issued a media statement addressing ongoing allegations from the trustees of the Lilavati Kirtilal Mehta Medical Trust (LKMMT). The bank describes these allegations as false, malicious, and defamatory, targeting both the institution and its Managing Director and CEO. HDFC Bank has requested that this statement be officially recorded to counter the claims made by LKMMT.
HDFC Bank Limited has issued a media statement addressing ongoing allegations from the trustees of the Lilavati Kirtilal Mehta Medical Trust (LKMMT). The bank describes these allegations as false, malicious, and defamatory, targeting both the institution and its Managing Director and CEO. HDFC Bank has requested that this statement be officially recorded to counter the claims made by LKMMT.
Mehta Family's Legal Battle Against HDFC Bank Intensifies Amidst Ongoing Debt Recovery Dispute
HDFC Bank Limited is embroiled in a legal dispute with the Mehta family, who have filed multiple legal actions against the bank and its senior officials. The Mehta family, owners of Splendour Gems Limited, has initiated complaints that include criminal filings and minority rights petitions, all of which have been dismissed or legally challenged. HDFC Bank attributes these actions to attempts by the Mehtas to avoid repaying a long-standing debt of approximately INR 65.22 crore. The bank maintains that the allegations are retaliatory and malicious, aimed at undermining legitimate recovery proceedings for debts that date back to 1995. Despite a recovery certificate issued in 2004, the dues remain unpaid. HDFC Bank is committed to pursuing all lawful remedies to recover the funds and defend its reputation against these actions.
HDFC Bank Limited is embroiled in a legal dispute with the Mehta family, who have filed multiple legal actions against the bank and its senior officials. The Mehta family, owners of Splendour Gems Limited, has initiated complaints that include criminal filings and minority rights petitions, all of which have been dismissed or legally challenged. HDFC Bank attributes these actions to attempts by the Mehtas to avoid repaying a long-standing debt of approximately INR 65.22 crore. The bank maintains that the allegations are retaliatory and malicious, aimed at undermining legitimate recovery proceedings for debts that date back to 1995. Despite a recovery certificate issued in 2004, the dues remain unpaid. HDFC Bank is committed to pursuing all lawful remedies to recover the funds and defend its reputation against these actions.
HDFC Bank Defends MD & CEO Amid Allegations from Lilavati Trust
HDFC Bank Limited is currently addressing allegations made by the Lilavati Kirtilal Mehta Medical Trust, accusing the bank's MD and CEO, Mr. Sashidhar Jagdishan, of misconduct. According to HDFC Bank, these claims are baseless and part of a series of legal maneuvers by the Trust's Trustee, Prashant Mehta, and his family, aimed at obstructing the recovery of substantial unpaid loans owed to the bank. The bank asserts its commitment to defending its leadership's integrity and pursuing all legal avenues to counter the allegations, describing them as attempts to intimidate and undermine the bank's efforts to recover overdue debts.
HDFC Bank Limited is currently addressing allegations made by the Lilavati Kirtilal Mehta Medical Trust, accusing the bank's MD and CEO, Mr. Sashidhar Jagdishan, of misconduct. According to HDFC Bank, these claims are baseless and part of a series of legal maneuvers by the Trust's Trustee, Prashant Mehta, and his family, aimed at obstructing the recovery of substantial unpaid loans owed to the bank. The bank asserts its commitment to defending its leadership's integrity and pursuing all legal avenues to counter the allegations, describing them as attempts to intimidate and undermine the bank's efforts to recover overdue debts.
India's HDFC Bank hits record high after bigger-than-expected rate cut
** Shares of HDFC Bank HDBK.NS rise as much as 2.4% to record high of 1996.30 rupees; close 1.49% higher
** India central bank cuts key lending rate by a larger-than-expected 50 bps in a bid to support economic growth
** The RBI also cut the cash reserve ratio (CRR) by 100 bps, which will increase the banking system liquidity by 2.5 trillion rupees
** On the day, banking stocks close .NSEBANK 1.47% higher
** NSEBANK up ~11.2% YTD compared with ~5.7% gain in the benchmark Nifty 50 index .NSEI
(Reporting by Nishit Navin in Bengaluru)
** Shares of HDFC Bank HDBK.NS rise as much as 2.4% to record high of 1996.30 rupees; close 1.49% higher
** India central bank cuts key lending rate by a larger-than-expected 50 bps in a bid to support economic growth
** The RBI also cut the cash reserve ratio (CRR) by 100 bps, which will increase the banking system liquidity by 2.5 trillion rupees
** On the day, banking stocks close .NSEBANK 1.47% higher
** NSEBANK up ~11.2% YTD compared with ~5.7% gain in the benchmark Nifty 50 index .NSEI
(Reporting by Nishit Navin in Bengaluru)
HDFC Bank Expands Reach with Inauguration of Ultra-Modern Currency Chest in Madurai
HDFC Bank Limited has expanded its operations with the inauguration of an ultra-modern currency chest in Uthangudi, Madurai, Tamil Nadu. This facility marks the bank's third currency chest in the state, its eighth in the South Zone, and the 37th in India. Equipped with advanced operational systems and German-made currency sorting machines, the new currency chest is designed to enhance cash distribution efficiency and ensure the timely availability of clean and fit currency. It will support 176 retail branches and 247 ATMs across the Madurai, Trichy, and Tirunelveli districts, thereby improving turnaround time and benefiting corporates, government institutions, and the local population. The inauguration was attended by key executives from HDFC Bank and the Reserve Bank of India.
HDFC Bank Limited has expanded its operations with the inauguration of an ultra-modern currency chest in Uthangudi, Madurai, Tamil Nadu. This facility marks the bank's third currency chest in the state, its eighth in the South Zone, and the 37th in India. Equipped with advanced operational systems and German-made currency sorting machines, the new currency chest is designed to enhance cash distribution efficiency and ensure the timely availability of clean and fit currency. It will support 176 retail branches and 247 ATMs across the Madurai, Trichy, and Tirunelveli districts, thereby improving turnaround time and benefiting corporates, government institutions, and the local population. The inauguration was attended by key executives from HDFC Bank and the Reserve Bank of India.
RBI's cash influx seen a small relief amid global uncertainty
Global uncertainties hinder corporate investment and loan growth
Banks deposit surplus cash with RBI, indicating limited lending
RBI's liquidity measures may prevent further growth deceleration
Analysts suggest fiscal measures needed alongside monetary easing
By Swati Bhat and Siddhi Nayak
MUMBAI, April 24 (Reuters) - The decision by India's central bank to cut rates and flood the banking system with cash will do little to immediately boost demand in Asia's third-largest economy as global uncertainties restrain corporate investment, bankers and sources said.
The infusion of liquidity, along with two consecutive rate cuts, will at best prevent further deceleration in growth, which probably fell to a four-year low of 6.5% in the financial year ended March 31, 2025, they said.
The Reserve Bank of India's (RBI) rate actions and liquidity measures are a "welcome relief" for banks but the global macroeconomic outlook has become more uncertain due to the recent trade tariff-related measures and the volatility surrounding them, said Sashidhar Jagdishan, CEO of HDFC Bank HDBK.NS, India's largest private lender by assets.
"Corporates have adopted a wait-and-watch stance, and we are waiting for more clarity," he added.
On April 9, the RBI cut rates by 25 basis points to 6%, a second cut in as many meetings, and slashed India's growth forecast for 2025-26 by 20 basis points to 6.5%. Since January, it has also bought bonds and conducted long-term FX swaps, infusing over $70 billion into the banking system.
However, banks are now depositing an average 2 trillion rupees ($23.41 billion) at the RBI's overnight cash parking facility versus 750 billion rupees in January, indicating that most of the surplus cash is not being lent out.
Banks' lending rates have started declining while corporate bond yields too have fallen 45-60 bps across tenors.
Neither the higher liquidity nor rate cuts are enough to "move the needle" for kick-starting corporate loan growth, said Alka Anbarasu, associate managing director, financial institutions at Moody's Ratings.
In fact, private capital spending may slow further amid the global tariff wars, analysts said.
"Private capex is about the future and is always a function of the demand and not so much about the cost of capital," said Gaura Sen Gupta, an economist at IDFC FIRST Bank.
INFLATION COMFORT
The central bank views monetary easing as a means to curb any further downside to growth with softer inflation giving it the leeway to do so, a source aware of the RBI's thinking said. This was evident in the rate panel's minutes.
"The fact that growth needs support is clear but monetary stimulus is one of the many factors that can help revive growth and that too works with a lag of 6-9 months," the source said.
Inflation eased below the RBI's 4% target in February and March and is seen holding around target in 2025-26.
However, most analysts and sources believe that the government will also need to implement fiscal measures to support the economy if the outlook remains uncertain.
The sources declined to be named as they are not authorised to speak to the media.
"Fiscal side is still overall neutral, so RBI's accommodative approach will help reduce the downside to growth. The fiscal side push is also essential if one has to help boost growth, right now it is only the RBI which is doing the heavy lifting," IDFC FIRST's Sen Gupta said.
($1 = 85.4175 Indian rupees)
(Reporting by Swati Bhat and Siddhi Nayak; Editing by Jacqueline Wong)
(([email protected]; x.com/swatibhat22;))
Global uncertainties hinder corporate investment and loan growth
Banks deposit surplus cash with RBI, indicating limited lending
RBI's liquidity measures may prevent further growth deceleration
Analysts suggest fiscal measures needed alongside monetary easing
By Swati Bhat and Siddhi Nayak
MUMBAI, April 24 (Reuters) - The decision by India's central bank to cut rates and flood the banking system with cash will do little to immediately boost demand in Asia's third-largest economy as global uncertainties restrain corporate investment, bankers and sources said.
The infusion of liquidity, along with two consecutive rate cuts, will at best prevent further deceleration in growth, which probably fell to a four-year low of 6.5% in the financial year ended March 31, 2025, they said.
The Reserve Bank of India's (RBI) rate actions and liquidity measures are a "welcome relief" for banks but the global macroeconomic outlook has become more uncertain due to the recent trade tariff-related measures and the volatility surrounding them, said Sashidhar Jagdishan, CEO of HDFC Bank HDBK.NS, India's largest private lender by assets.
"Corporates have adopted a wait-and-watch stance, and we are waiting for more clarity," he added.
On April 9, the RBI cut rates by 25 basis points to 6%, a second cut in as many meetings, and slashed India's growth forecast for 2025-26 by 20 basis points to 6.5%. Since January, it has also bought bonds and conducted long-term FX swaps, infusing over $70 billion into the banking system.
However, banks are now depositing an average 2 trillion rupees ($23.41 billion) at the RBI's overnight cash parking facility versus 750 billion rupees in January, indicating that most of the surplus cash is not being lent out.
Banks' lending rates have started declining while corporate bond yields too have fallen 45-60 bps across tenors.
Neither the higher liquidity nor rate cuts are enough to "move the needle" for kick-starting corporate loan growth, said Alka Anbarasu, associate managing director, financial institutions at Moody's Ratings.
In fact, private capital spending may slow further amid the global tariff wars, analysts said.
"Private capex is about the future and is always a function of the demand and not so much about the cost of capital," said Gaura Sen Gupta, an economist at IDFC FIRST Bank.
INFLATION COMFORT
The central bank views monetary easing as a means to curb any further downside to growth with softer inflation giving it the leeway to do so, a source aware of the RBI's thinking said. This was evident in the rate panel's minutes.
"The fact that growth needs support is clear but monetary stimulus is one of the many factors that can help revive growth and that too works with a lag of 6-9 months," the source said.
Inflation eased below the RBI's 4% target in February and March and is seen holding around target in 2025-26.
However, most analysts and sources believe that the government will also need to implement fiscal measures to support the economy if the outlook remains uncertain.
The sources declined to be named as they are not authorised to speak to the media.
"Fiscal side is still overall neutral, so RBI's accommodative approach will help reduce the downside to growth. The fiscal side push is also essential if one has to help boost growth, right now it is only the RBI which is doing the heavy lifting," IDFC FIRST's Sen Gupta said.
($1 = 85.4175 Indian rupees)
(Reporting by Swati Bhat and Siddhi Nayak; Editing by Jacqueline Wong)
(([email protected]; x.com/swatibhat22;))
India New Issue-HDB Financial Services accepts bids for multiple tenor bonds, bankers say
MUMBAI, April 23 (Reuters) - India's HDB Financial Services has accepted bids worth 16.25 billion rupees ($190 million), for multiple maturity bonds, three bankers said on Wednesday.
The non-banking finance company will issue bonds maturing in five years and 13 days and in four years, and reissue September 2027 bonds, the bankers said. It had invited bids for all the options earlier in the day.
HDB Financial Services did not respond to a Reuters email seeking comment.
Here is the list of deals reported so far on April 23:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
HDB Financial | 5 years and 13 days | 7.6065 | 1.25 | April 23 | AAA (Crisil, Care) |
HDB Financial | 4 years | 7.5519 | 5 | April 23 | AAA (Crisil, Care) |
HDB Financial | 2 years and five months | 7.5197 (yield) | 10 | April 23 | AAA (Crisil, Care) |
NHB | 6 years and 11 months and 8 days | 6.80 | 50 | April 23 | AAA (Care, India Ratings) |
Tata Capital Housing Finance | 3 years | 7.27 | 7.50+8.45 | April 24 | AAA (Crisil) |
Cube Highways Trust | 3 years | To be decided | 5.52 | April 24 | AAA (Crisil) |
Cube Highways Trust | 7 years | To be decided | 6 | April 24 | AAA (Crisil) |
IRFC | 5 years | To be decided | 5+25 | April 24 | AAA (Crisil, Icra, Care) |
* Size includes base plus greenshoe for some issues
($1 = 85.4110 Indian rupees)
(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)
MUMBAI, April 23 (Reuters) - India's HDB Financial Services has accepted bids worth 16.25 billion rupees ($190 million), for multiple maturity bonds, three bankers said on Wednesday.
The non-banking finance company will issue bonds maturing in five years and 13 days and in four years, and reissue September 2027 bonds, the bankers said. It had invited bids for all the options earlier in the day.
HDB Financial Services did not respond to a Reuters email seeking comment.
Here is the list of deals reported so far on April 23:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
HDB Financial | 5 years and 13 days | 7.6065 | 1.25 | April 23 | AAA (Crisil, Care) |
HDB Financial | 4 years | 7.5519 | 5 | April 23 | AAA (Crisil, Care) |
HDB Financial | 2 years and five months | 7.5197 (yield) | 10 | April 23 | AAA (Crisil, Care) |
NHB | 6 years and 11 months and 8 days | 6.80 | 50 | April 23 | AAA (Care, India Ratings) |
Tata Capital Housing Finance | 3 years | 7.27 | 7.50+8.45 | April 24 | AAA (Crisil) |
Cube Highways Trust | 3 years | To be decided | 5.52 | April 24 | AAA (Crisil) |
Cube Highways Trust | 7 years | To be decided | 6 | April 24 | AAA (Crisil) |
IRFC | 5 years | To be decided | 5+25 | April 24 | AAA (Crisil, Icra, Care) |
* Size includes base plus greenshoe for some issues
($1 = 85.4110 Indian rupees)
(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)
India New Issue-HDB Financial Services to issue multiple tenor bonds, bankers say
MUMBAI, April 22 (Reuters) - India's HDB Financial Services plans to raise 28 billion rupees ($329.1 million), which includes a greenshoe option of 20.50 billion rupees, through a sale of multiple maturity bonds, three bankers said on Tuesday.
The non-banking finance company will issue bonds maturing in five years and 13 days and in four years, while it will reissue September 2027 bonds, the bankers said, adding that it has invited bids for all the options on Tuesday.
HDB Financial Services did not respond to a Reuters email seeking comment.
Here is the list of deals reported so far on April 22:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
HDB Financial | 5 years and 13 days | 7.6065 | 1+2 | April 23 | AAA (Crisil, Care) |
HDB Financial | 4 years | 7.5519 | 1.50+3.50 | April 23 | AAA (Crisil, Care) |
HDB Financial | 2 years and five months | 7.53 (yield) | 5+15 | April 23 | AAA (Crisil, Care) |
NHB | 6 years and 11 months and 8 days | To be decided | 10+40 | April 23 | AAA (Care, India Ratings) |
*Size includes base plus greenshoe for some issues
($1 = 85.0830 Indian rupees)
(Reporting by Dharamraj Dhutia
Editing by Eileen Soreng)
MUMBAI, April 22 (Reuters) - India's HDB Financial Services plans to raise 28 billion rupees ($329.1 million), which includes a greenshoe option of 20.50 billion rupees, through a sale of multiple maturity bonds, three bankers said on Tuesday.
The non-banking finance company will issue bonds maturing in five years and 13 days and in four years, while it will reissue September 2027 bonds, the bankers said, adding that it has invited bids for all the options on Tuesday.
HDB Financial Services did not respond to a Reuters email seeking comment.
Here is the list of deals reported so far on April 22:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
HDB Financial | 5 years and 13 days | 7.6065 | 1+2 | April 23 | AAA (Crisil, Care) |
HDB Financial | 4 years | 7.5519 | 1.50+3.50 | April 23 | AAA (Crisil, Care) |
HDB Financial | 2 years and five months | 7.53 (yield) | 5+15 | April 23 | AAA (Crisil, Care) |
NHB | 6 years and 11 months and 8 days | To be decided | 10+40 | April 23 | AAA (Care, India Ratings) |
*Size includes base plus greenshoe for some issues
($1 = 85.0830 Indian rupees)
(Reporting by Dharamraj Dhutia
Editing by Eileen Soreng)
India's HDFC Bank, ICICI Bank close higher as quarterly earnings boost investor confidence
Updates with analyst comment in paragraph 12, adds graphic
April 21 (Reuters) - HDFC Bank HDBK.NS and ICICI Bank ICBK.NS closed higher on Monday after strong results over the weekend, as investors bet on their ability to sustain loan growth and margins while managing credit costs.
The Reserve Bank of India's easing stance and liquidity support are expected to spur credit demand and economic growth, helping Indian banks.
However, analysts warned that net interest margins may come under pressure as loan rates typically adjust faster than deposit costs.
HDFC Bank and ICICI Bank reported quarterly results above analyst estimates on Saturday, with the latter reporting a record profit.
Gains in India's two largest private banks by assets lifted the benchmark Nifty 50 index .NSEI by 1.2% on the day, while the Nifty Bank .NSEBANK and Nifty Private Bank .NIFPVTBNK indexes rose about 2% each.
Analysts at Nuvama said HDFC Bank's asset quality was the "best in class" as its pool of fresh bad loans was falling, while that of ICICI Bank was improving.
HDFC Bank expects its loan growth to be above that of the industry in fiscal year 2027, Chief Financial Officer Srinivasan Vaidyanathan said in a post-earnings call, without divulging specific targets.
The two banks are Jefferies' top picks in the sector, with analysts highlighting their ability to expand lending margins while maintaining credit costs.
At least 16 analysts hiked their price targets on their shares after the results, per data compiled by LSEG.
The median price targets on ICICI Bank and HDFC Bank have risen to 1,600 rupees and 2,120 rupees, respectively, from 1,495 rupees and 1,970 rupees last month.
Shares of HDFC Bank closed 1% to 1,927.1 rupees on Monday, while ICICI Bank gained 0.2% to 1,409.80 rupees, after climbing as much as 2% earlier in the session.
($1 = 85.1310 Indian rupees)
Nifty Bank index has outperformed Indian benchmarks so far in April https://reut.rs/42K6sAN
(Reporting by Kashish Tandon and Ashish Chandra in Bengaluru, Siddhi Nayak in Mumbai; Editing by Nivedita Bhattacharjee, Janane Venkatraman and Mrigank Dhaniwala)
(([email protected]; +91 7982114624;))
Updates with analyst comment in paragraph 12, adds graphic
April 21 (Reuters) - HDFC Bank HDBK.NS and ICICI Bank ICBK.NS closed higher on Monday after strong results over the weekend, as investors bet on their ability to sustain loan growth and margins while managing credit costs.
The Reserve Bank of India's easing stance and liquidity support are expected to spur credit demand and economic growth, helping Indian banks.
However, analysts warned that net interest margins may come under pressure as loan rates typically adjust faster than deposit costs.
HDFC Bank and ICICI Bank reported quarterly results above analyst estimates on Saturday, with the latter reporting a record profit.
Gains in India's two largest private banks by assets lifted the benchmark Nifty 50 index .NSEI by 1.2% on the day, while the Nifty Bank .NSEBANK and Nifty Private Bank .NIFPVTBNK indexes rose about 2% each.
Analysts at Nuvama said HDFC Bank's asset quality was the "best in class" as its pool of fresh bad loans was falling, while that of ICICI Bank was improving.
HDFC Bank expects its loan growth to be above that of the industry in fiscal year 2027, Chief Financial Officer Srinivasan Vaidyanathan said in a post-earnings call, without divulging specific targets.
The two banks are Jefferies' top picks in the sector, with analysts highlighting their ability to expand lending margins while maintaining credit costs.
At least 16 analysts hiked their price targets on their shares after the results, per data compiled by LSEG.
The median price targets on ICICI Bank and HDFC Bank have risen to 1,600 rupees and 2,120 rupees, respectively, from 1,495 rupees and 1,970 rupees last month.
Shares of HDFC Bank closed 1% to 1,927.1 rupees on Monday, while ICICI Bank gained 0.2% to 1,409.80 rupees, after climbing as much as 2% earlier in the session.
($1 = 85.1310 Indian rupees)
Nifty Bank index has outperformed Indian benchmarks so far in April https://reut.rs/42K6sAN
(Reporting by Kashish Tandon and Ashish Chandra in Bengaluru, Siddhi Nayak in Mumbai; Editing by Nivedita Bhattacharjee, Janane Venkatraman and Mrigank Dhaniwala)
(([email protected]; +91 7982114624;))
India's HDFC Bank sees loan-to-deposit ratio at 85%-90% by FY27, CFO says
Recasts with comments from management
By Siddhi Nayak
MUMBAI, April 19 (Reuters) - HDFC Bank HDBK.NS, India's largest private lender, aims to bring its loan-to-deposit ratio (LDR) back down to its pre-merger levels of 85%-90% in 2026-27, its chief financial officer said on Saturday.
HDFC's LDR has been elevated but declining since its merger with parent Housing Development Finance Corporation, which completed on July 1, 2023. LDR was at 96.5% at the end of March, down from 104% a year earlier, CFO Srinivasan Vaidyanathan said in post-earnings call.
The merger added a large pool of loans to its portfolio but a much smaller amount of deposits, putting it under pressure to raise deposits or slow loan growth.
The Mumbai-based lender's gross advances, or loans sanctioned and disbursed, rose around 4% sequentially in the January-March quarter, while deposits rose 5.9% to 27.15 trillion rupees.
HDFC Bank expects its loan growth to be above that of the industry in 2026-27, Vaidyanathan reiterated, without divulging specific targets.
"The opportunity to grow in retail is higher than other segments," the CFO said, while highlighting "intense" pricing pressure in corporate loan segments.
Earlier in the day, HDFC Bank logged a standalone net profit of 176.16 billion rupees ($2.06 billion) for the financial fourth quarter, up from 167.36 billion rupees in the previous three months and sharply above analysts' estimate of 170.27 billion rupees, according to data compiled by LSEG.
Net interest income, the difference between interest earned and paid, rose 4.6% to 320.7 billion rupees, core net interest margin rose to 3.54% from 3.43% on total assets, and to 3.73% from 3.62% on interest-earning assets.
Excluding interest on an income tax refund worth 117 billion rupees, HDFC's core net interest margin was 3.46% on total assets and 3.65% on interest-earning assets.
HDFC Bank's asset quality improved, with its gross non-performing assets ratio falling to at 1.33% at the end of March from 1.42% three months earlier.
($1 = 85.4290 Indian rupees)
(Reporting by Siddhi Nayak
Editing by William Mallard and Peter Graff)
(([email protected]; x.com/siddhiVnayak;))
Recasts with comments from management
By Siddhi Nayak
MUMBAI, April 19 (Reuters) - HDFC Bank HDBK.NS, India's largest private lender, aims to bring its loan-to-deposit ratio (LDR) back down to its pre-merger levels of 85%-90% in 2026-27, its chief financial officer said on Saturday.
HDFC's LDR has been elevated but declining since its merger with parent Housing Development Finance Corporation, which completed on July 1, 2023. LDR was at 96.5% at the end of March, down from 104% a year earlier, CFO Srinivasan Vaidyanathan said in post-earnings call.
The merger added a large pool of loans to its portfolio but a much smaller amount of deposits, putting it under pressure to raise deposits or slow loan growth.
The Mumbai-based lender's gross advances, or loans sanctioned and disbursed, rose around 4% sequentially in the January-March quarter, while deposits rose 5.9% to 27.15 trillion rupees.
HDFC Bank expects its loan growth to be above that of the industry in 2026-27, Vaidyanathan reiterated, without divulging specific targets.
"The opportunity to grow in retail is higher than other segments," the CFO said, while highlighting "intense" pricing pressure in corporate loan segments.
Earlier in the day, HDFC Bank logged a standalone net profit of 176.16 billion rupees ($2.06 billion) for the financial fourth quarter, up from 167.36 billion rupees in the previous three months and sharply above analysts' estimate of 170.27 billion rupees, according to data compiled by LSEG.
Net interest income, the difference between interest earned and paid, rose 4.6% to 320.7 billion rupees, core net interest margin rose to 3.54% from 3.43% on total assets, and to 3.73% from 3.62% on interest-earning assets.
Excluding interest on an income tax refund worth 117 billion rupees, HDFC's core net interest margin was 3.46% on total assets and 3.65% on interest-earning assets.
HDFC Bank's asset quality improved, with its gross non-performing assets ratio falling to at 1.33% at the end of March from 1.42% three months earlier.
($1 = 85.4290 Indian rupees)
(Reporting by Siddhi Nayak
Editing by William Mallard and Peter Graff)
(([email protected]; x.com/siddhiVnayak;))
HDFC Bank, ICICI lift Indian financials to record high ahead of results
** India's financials .NIFTYFIN rise 1.3% to hit lifetime high of 25,811.25; on course for fourth straight session of gains
** HDFC Bank HDBK.NS and ICICI Bank ICBK.NS, up 1% and 2.3% respectively to record highs ahead of quarterly results due in the weekend
** Gains driven by expectations of NIM improvement after savings rate cut, stable asset quality, and prospects of an RBI rate cut, analysts say
** FPIs showing signs of return after intense selling since late-September also aiding bank stocks
** Financials offer more structural and long term growth visibility compared to export-driven sectors amid global tariff turmoil - Vinay Paharia, chief investment officer at PGIM Mutual Fund
** CASA growth will be key to credit growth and stock price moves of large banks, while total deposit growth will be more important for mid- and small-sized banks - JP Morgan
** YTD, financials up 9.4% vs 0.3% drop in benchmark Nifty 50 .NSEI
(Reporting by Vivek Kumar M)
(([email protected];))
** India's financials .NIFTYFIN rise 1.3% to hit lifetime high of 25,811.25; on course for fourth straight session of gains
** HDFC Bank HDBK.NS and ICICI Bank ICBK.NS, up 1% and 2.3% respectively to record highs ahead of quarterly results due in the weekend
** Gains driven by expectations of NIM improvement after savings rate cut, stable asset quality, and prospects of an RBI rate cut, analysts say
** FPIs showing signs of return after intense selling since late-September also aiding bank stocks
** Financials offer more structural and long term growth visibility compared to export-driven sectors amid global tariff turmoil - Vinay Paharia, chief investment officer at PGIM Mutual Fund
** CASA growth will be key to credit growth and stock price moves of large banks, while total deposit growth will be more important for mid- and small-sized banks - JP Morgan
** YTD, financials up 9.4% vs 0.3% drop in benchmark Nifty 50 .NSEI
(Reporting by Vivek Kumar M)
(([email protected];))
HDFC Bank Ltd expected to post earnings of 53 cents a share - Earnings Preview
HDFC Bank Ltd HDB.N, HDB is expected to report resultson April 18 (estimated) for the period ending September 30 2024
LSEG's mean analyst estimate for HDFC Bank Ltd is for earnings of 53 cents per share.
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy," no "hold" and no "sell" or "strong sell."
The mean earnings estimate of analysts was unchanged in the last three months.
Wall Street's median 12-month price target for HDFC Bank Ltd is $75.90, above its last closing price of $69.41.
This summary was machine generated April 16 at 11:01 GMT. All figures in US dollars unless otherwise stated. (For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact [email protected])
HDFC Bank Ltd HDB.N, HDB is expected to report resultson April 18 (estimated) for the period ending September 30 2024
LSEG's mean analyst estimate for HDFC Bank Ltd is for earnings of 53 cents per share.
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy," no "hold" and no "sell" or "strong sell."
The mean earnings estimate of analysts was unchanged in the last three months.
Wall Street's median 12-month price target for HDFC Bank Ltd is $75.90, above its last closing price of $69.41.
This summary was machine generated April 16 at 11:01 GMT. All figures in US dollars unless otherwise stated. (For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact [email protected])
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What does HDFC Bank do?
HDFC Bank Limited is a prominent private bank in India, offering a wide range of commercial, investment, and retail banking services across three key segments.
Who are the competitors of HDFC Bank?
HDFC Bank major competitors are ICICI Bank, SBI, Kotak Mahindra Bank, Axis Bank, Indusind Bank, Yes Bank, AU Small Fin. Bank. Market Cap of HDFC Bank is ₹15,51,737 Crs. While the median market cap of its peers are ₹3,30,474 Crs.
Is HDFC Bank financially stable compared to its competitors?
HDFC Bank seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does HDFC Bank pay decent dividends?
The company seems to be paying a very low dividend. Investors need to see where the company is allocating its profits. HDFC Bank latest dividend payout ratio is 23.78% and 3yr average dividend payout ratio is 23.32%
How has HDFC Bank allocated its funds?
Company has been allocating majority of new resources to productive uses like loans. However relatively unproductive allocation like cash and Gov Securities has also increased.
How strong is HDFC Bank balance sheet?
Latest balance sheet of HDFC Bank is strong. Strength was visible historically as well.
Is the profitablity of HDFC Bank improving?
Yes, profit is increasing. The profit of HDFC Bank is ₹73,343 Crs for TTM, ₹70,792 Crs for Mar 2025 and ₹64,062 Crs for Mar 2024.
Is HDFC Bank stock expensive?
HDFC Bank is expensive when considering the PE ratio, however latest Price to Book is < 3 yr avg Price to Book. Latest PE of HDFC Bank is 21.99 while 3 year average PE is 21.64. Also latest Price to Book of HDFC Bank is 2.86 while 3yr average is 3.19.
Has the share price of HDFC Bank grown faster than its competition?
HDFC Bank has given better returns compared to its competitors. HDFC Bank has grown at ~10.7% over the last 8yrs while peers have grown at a median rate of 9.57%
Is the promoter bullish about HDFC Bank?
There is Insufficient data to gauge this.
Are mutual funds buying/selling HDFC Bank?
The mutual fund holding of HDFC Bank is increasing. The current mutual fund holding in HDFC Bank is 25.61% while previous quarter holding is 25.23%.