SBI vs HDFC Bank; Here’s a financial and share price performance

In India, when discussing the banking system, two prominent names that always come to mind for everyone are the State Bank of India, the oldest and largest public sector bank in India, and HDFC Bank. These two banks have not only provided excellent services to their customers but have also played a pivotal role in shaping the banking landscape.

Furthermore, these banks have generated significant wealth for their investors who have been part of their journey through both ups and downs since its initial journey.

Today, in this article, we are going to compare both the State Bank of India and HDFC Bank in terms of their financial performance and share performance. Let’s begin with the share performance first.

Share Performance: 

In terms of size, SBI has a market capitalization of Rs 5,39,450 crore, while HDFC Bank’s current market capitalisation stands at Rs 12,34,672 crore. The stock price of SBI is Rs 605 per share, and HDFC Bank’s share price is Rs 1,630 per share.

Additionally, when we compare the share performance of both banks, SBI has generated a 5.5% return in the last month, whereas HDFC has generated a mere 2.5%. Over the past year, SBI has delivered a return of 7.7%, while HDFC has achieved 9.2%.

If we consider the longer-term horizon of the last three years, SBI has yielded an impressive multibagger return of 214%, while HDFC has generated a 54% return during the same period.

Financials Performance 

When comparing the loans and advances of both banks, in the recent quarter, SBI had loans and advances totalling Rs 33,03,731 crore, while HDFC’s loans and advances amounted to Rs 16,80,596 crore in the Q1 FY24.

In terms of CASA deposits, SBI had Rs 18,66,059 crore in Q1 FY24, whereas HDFC Bank’s CASA deposits were at Rs 19,11,720 crore.

When we assess the asset quality of both banks, during the Q1 FY24 SBI reported GNPA and NNPA of 2.76% and 0.71%, respectively, while HDFC Bank’s figures were 1.17% for GNPA and 0.30% for NNPA. In terms of asset quality, HDFC Bank exhibited strength compared to SBI.

If we analyse some key ratios useful for evaluating the banking business, let’s begin with the Price-to-Book (PB) value. SBI has a PB ratio of 1.63, whereas HDFC’s PB ratio is 4.47. When considering the Return on Asset (ROA) ratio, SBI’s ROA stands at 1.22%, while HDFC Bank’s ROA is 0.51%.

In terms of the bank’s distribution network, according to the information available in the last financial year’s annual report, SBI operates a total of 22,405 branches, whereas HDFC has an extensive network with more than 7,800 branches across India.

Below is the chart presentation of both the stocks in the weekly time frame : 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.