HDFC Bank Share Price (HDFCBANK)

HDFC Bank Limited was incorporated in August 1994 and commenced operations as a Scheduled Commercial Bank in January 1995. A significant development in its history was the merger with Housing Development Finance Corporation Limited (HDFC Ltd.), India's largest housing finance company, effective July 1, 2023. The bank operates in the banking and financial services sector. As of March 31, 2025, HDFC Bank's total deposits stood at ₹27.14 lakh crore, and its gross advances were ₹26.43 lakh crore. The bank's distribution network on the same date comprised 9,455 branches and 21,139 ATMs spread across 4,150 cities and towns, with 51% of its branches located in semi-urban and rural areas. HDFC Bank is India's largest private sector bank by assets and market capitalisation. A key achievement includes the successful amalgamation with HDFC Limited, which significantly expanded its scale and customer base. The Reserve Bank of India (RBI) has identified HDFC Bank as a Domestic Systemically Important Bank (D-SIB).

What does HDFC Bank Ltd do?

HDFC Bank Ltd offers a comprehensive range of banking and financial services to a diverse customer base, including individuals, retail customers, small and medium-sized enterprises (SMEs), agricultural customers, and large corporations. Its core business activities involve accepting deposits (such as savings accounts, current accounts, and fixed deposits), providing a variety of loans, and offering payment and collection services. The bank also undertakes treasury operations. As of March 31, 2025, its extensive network ensures a significant presence across India, with a particular focus on extending services to semi-urban and rural geographies. The bank's primary revenue generation model is based on net interest income, derived from the difference between the interest earned on its loan portfolio and the interest paid on deposits. Additionally, HDFC Bank earns non-interest income through fees and commissions on a wide array of products and services, including transaction banking, credit and debit cards, third-party product distribution (like insurance and mutual funds), and wealth management services.

Products/Services of HDFC Bank Ltd

HDFC Bank provides a wide array of products and services catering to different customer segments. Key offerings include:

Retail Banking

This segment focuses on individual customers, offering savings and current accounts, term deposits, and various loan products such as personal loans, auto loans, and home loans. The home loan portfolio was significantly augmented following the merger with HDFC Ltd. As of March 31, 2025, the bank's retail loans recorded a growth of 9% year-over-year.

Commercial and Rural Banking

HDFC Bank provides tailored financial solutions to small and medium-sized enterprises (SMEs) and customers in the agricultural sector. This includes working capital finance, term loans, and other business banking services. For the year ended March 31, 2025, loans to the commercial and rural banking segment increased by 12.8%.

Wholesale Banking

This division caters to the financial needs of large corporates, public sector undertakings, and government bodies. Services include project finance, debt syndication, working capital loans, trade finance, and treasury products. As of March 31, 2025, corporate and other wholesale loans saw a decline of 3.6% year-over-year, reflecting a strategic moderation in this segment.

Cards and Payments

HDFC Bank is a prominent player in the credit and debit card market, offering a variety of cards suited to different customer needs. These products contribute to the bank's fee-based income and play a crucial role in its digital payment ecosystem.

Digital Banking Solutions

The bank offers a comprehensive suite of digital banking services, including internet banking, mobile banking applications like PayZapp, and UPI-based payment solutions, facilitating convenient and secure transactions for its customers.

Future Outlook and Expansion Plans of HDFC Bank Ltd

HDFC Bank continues to focus on expanding its physical presence and enhancing its service capabilities. During the financial year ended March 31, 2025, the bank added 717 new branches to its network. Looking ahead, the bank is working on optimizing its balance sheet, with a particular focus on its loan-to-deposit ratio (LDR). As of March 31, 2025, the LDR stood at approximately 96%, down from about 110% at the time of the merger. The bank intends to further reduce this ratio during the financial year 2026 (FY26) and aims to bring it down to the pre-merger level of 85-90% by FY27. Management has indicated that after a year of consolidation in FY25, the bank will target system-level loan growth in FY26, with an aspiration for some outperformance in FY27. Furthermore, HDFC Bank is making ongoing investments in technology to improve customer experience and operational efficiency, with the benefits of these initiatives expected to become more apparent from FY26 onwards.