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Law Offices of Howard G. Smith announces an investigation on behalf of HDFC Bank Limited (“HDFC Bank” or the “Company”) (NYSE: [url="]HDB[/url]) investo

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of HDFC Bank Limited (“HDFC Bank” or the “Company”) (NYSE: HDB) investors concerning the Company's possible violations of federal securities laws.IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN HDFC BANK LIMITED (HDB), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at h.

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of HDFC Bank Limited (“HDFC Bank” or the “Company”) (NYSE: HDB) on behalf of investors concerning the Company's possible violations of federal securities laws.IF YOU ARE AN INVESTOR WHO LOST MONEY ON HDFC BANK LIMITED (HDB), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.What Is The Investigation About?On May 27, 2026, the Indian Express newspaper reported that HDFC Bank had m.

Modi Momentum: Finding Stability in India’s Goldilocks EconomyHDFC Bank NYSE: HDB management told investors that the lender entered the first quarter of fiscal 2027 with improving business momentum, stronger branch productivity and continued market-share gains in deposits, while also acknowledging ongoing pressure from funding costs and a shifting deposit mix.

Chief Executive Officer Sashi Jagdishan opened the earnings call by noting that the bank had navigated “certain challenges over the last four months” while keeping its focus on customer needs and franchise expansion. He thanked employees, the board and Keki Mistry, who served as interim chairman, and welcomed newly appointed Chairman Rajiv Kumar. Jagdishan said Kumar’s appointment brought “a sense of stability” and reduced uncertainty for the institution.

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Deposit Growth Remains a Key Focus Jagdishan said deposit growth in the quarter remained “relatively better than the historical Q1 trends,” with HDFC Bank continuing to gain market share on both an incremental and stock basis. He also said branch productivity continued to improve as the bank realized benefits from investments made over the past five to six years.

Chief Financial Officer Srinivasan Vaidyanathan said the bank has more than 100 million customer relationships and is focused on improving “unit economics” by adding more accounts while keeping costs under control. He said household deposit growth in India remains among the lowest across deposit categories, which makes customer acquisition and distribution reach critical.

Management also discussed the bank’s current account and savings account, or CASA, trajectory. Jagdishan said the bank’s objective is to move closer to pre-merger CASA levels, noting levels around 38% after the merger and 40% before that. However, he said time deposit growth has been higher than low-cost funds growth in recent years, contributing to a lower CASA ratio.

Vaidyanathan added that time deposits also remain an opportunity, noting that only 14% of the bank’s customers currently have time deposits with HDFC Bank.

Margins Pressured, But Management Points to Long-Term Levers Asked whether margins had bottomed, Vaidyanathan said the bank does not manage margins on a quarter-to-quarter basis and that a full-year view is more appropriate. He identified cost of funds as the largest opportunity for margin improvement, but cautioned that changes would not happen quickly.

Vaidyanathan said non-retail deposit costs remain elevated, while retail deposit costs have been relatively steady. He also said the bank’s borrowing mix remains around 11%, compared with an industry level of roughly 5% to 6%, and that maturities and balance-sheet growth should help reduce that proportion over time.

On the asset side, Vaidyanathan said the mix of loans will also matter for longer-term margins. He noted that retail loans make up about 52% of the bank’s loan mix, while management has historically viewed roughly 60% as a level that better mirrors the consumption component of India’s economy.

Management said cost of funds was broadly flat sequentially and down about 40 basis points year over year.

Loan Growth Broad-Based Across Wholesale, MSME and Retail Jagdishan said the bank is “on the verge of pressing the pedal” on advances, adding that loan growth has been strong over recent quarters and that the trajectory continues. He said credit demand in the system is healthy, though competition remains intense, particularly in corporate lending where spreads are thin.

Management said wholesale and corporate loans grew about 18%, while business banking, described as the largest component of the MSME segment, grew 22.3%. The bank also participated in the ECLGS 5.0 scheme, with disbursements of close to INR 14,000 crore as of June 30.

In retail lending, management said disbursement growth was strong in the wheels business and in unsecured products such as personal loans and business loans. Mortgage disbursements grew close to 14% year over year, while some other retail disbursements grew by roughly 20%.

HDFC Bank also highlighted the FCNR(B) policy window as an opportunity. Jagdishan said the bank spent much of June completing documentation and approvals internally and with counterparty banks across jurisdictions. He declined to provide a specific mobilization target but said the bank aims to capture a “reasonably strong and significant market share” as activity picks up in July, August and September.

Technology, Efficiency and Customer Service Prioritized Jagdishan repeatedly emphasized customer service and turnaround time as strategic priorities. He said the bank is measuring service delivery more granularly across the country and reimagining digital journeys and analytics to drive adoption and efficiency.

The CEO said HDFC Bank is “on the cusp” of using GenAI technologies in its processes, with several “lighthouse programs” expected to go into production during the year. He also said security remains a central part of the bank’s strategy and that management is exploring how AI can strengthen defense mechanisms.

Asked about whether the bank is underinvesting after keeping costs controlled, Jagdishan said the bank has made significant investments over the past five years in distribution, staffing and technology. He said distribution investment may be “slightly muted” for now, but technology investment will continue, particularly in security and AI.

Provisioning and Governance Updates On expected credit loss rules due to take effect April 1, 2027, Vaidyanathan said the bank’s overall provisions appear “adequate and sufficient” for the new methodology. He said there may be some ongoing impact because of required provisioning floors, but he does not expect it to be material based on the bank’s current view.

Management also addressed board and leadership matters. Jagdishan said the board is considering steps related to adding another executive director and that “a fair amount of action” should be visible in a short time. On the managing director and CEO reappointment process, Vaidyanathan said the nomination and remuneration committee and the board are “fully seized of the matter” and that announcements will be made when conclusions are reached.

Looking ahead, Jagdishan cited weather-related risks such as El Niño and geopolitical tensions in West Asia, but said the country and the bank are prepared to weather potential challenges. He said HDFC Bank remains focused on customer engagement, technology-led efficiency and long-term franchise growth.

About HDFC Bank (NYSE:HDB)HDFC Bank Limited is one of India's leading private sector banks, headquartered in Mumbai. Incorporated in 1994 and promoted by Housing Development Finance Corporation (HDFC), the bank provides a full range of banking and financial services to retail, small and medium-sized enterprises, and corporate customers. It is publicly listed and also accessible to international investors through American Depositary Receipts (ADRs) trading on the New York Stock Exchange under the symbol HDB.

The bank's core activities include retail banking (deposit accounts, personal loans, home loans, auto loans, and credit cards), commercial and corporate banking (working capital finance, term lending, trade finance and treasury services), and transaction banking (cash management and payment solutions).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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ASML reported solid 4Q25 results and record bookings due to strong AI demand for DRAM and advanced logic, and FY2026 guidance is above consensus. Adyen reported December quarter results slightly below consensus expectations, with net revenue growing 19% y/y. For the Baird Chautauqua International Growth Fund, 60% of companies that reported earnings during the quarter were in line with or exceeded consensus estimates.

HDFC Bank Limited (HDB) Q4 2026 Earnings Call Transcript

Invesco EQV International Equity Fund trailed the index primarily due to stock selection in financials and industrials. Stock selection in financials and industrials, along with an underweight and stock selection in energy, detracted the most from relative return. Conversely, an underweight allocation in communication services and stock selection in consumer staples added to relative performance.

On May 11, 2026, HDFC Bank Ltd HDB shares fell by 3.3%, closing at $24.20. This decline is part of a larger downward trend, with the stock down 33.8% year-to-date and 30.5% over the past year. The shares have traded within a 52-week range of $23.91 to $39.81.

GF Value™ verdict: HDB is currently priced at $24.20, which is 23.3% below its GF Value™ of $31.56.GF Score™: HDB has a GF Score™ of 76/100, indicating it is above average compared to other stocks.Most notable signal: Insiders have sold $0.3 million worth of shares in the last three months, with no buying activity reported. Is HDB Overvalued or Undervalued? With HDFC Bank's current price of $24.20 significantly lower than the GF Value™ estimate of $31.56, the stock appears to be undervalued by 23.3%. This presents a potential opportunity for investors looking for stocks that may be trading below their intrinsic value. The GF Valuation label categorizes HDB as "Modestly Undervalued," suggesting that the stock has a margin of safety for those considering its current valuation.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current undervaluation, potential investors might find HDB appealing; however, caution is warranted due to the recent performance trends and the absence of insider buying, which could indicate a lack of confidence from those with inside knowledge of the company.

How Does HDB's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.3x 20.4x Forward P/E 19.2x N/A HDB's current P/E (TTM) of 15.3x is 25% below its 5-year median P/E of 20.4x, indicating that the stock is trading below its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict, supporting the notion that HDB is undervalued at its current price.

What Does HDB's GF Score™ Tell Us? Metric Rating GF Score™ 76/100 Financial Strength 3/10 Profitability 6/10 Growth 9/10 Valuation 8/10 Momentum 2/10 The GF Score™ provides valuable insights into HDB's overall performance. With a score of 76/100, the bank exhibits strong growth potential (9/10), indicating promising future earnings and revenue increases. However, the financial strength score of 3/10 is a significant weakness, suggesting potential concerns regarding the bank's stability. The valuation score of 8/10 further supports the undervaluation perspective, while the momentum score of 2/10 highlights ongoing challenges in maintaining positive price movement.

What Are Insiders Doing with HDB Stock? In the past three months, insider activity for HDB has shown a net sale of $0.3 million, with no reported purchases. This trend could suggest a lack of confidence from insiders in the company's immediate future performance. Typically, insider buying is viewed as a positive signal, indicating that those with the most knowledge about the company believe in its potential. Conversely, the recent selling could raise concerns for potential investors.

What This Means for Investors Based on the current analysis, HDFC Bank Ltd HDB is considered undervalued at its current price of $24.20 compared to its GF Value™ of $31.56. While this presents an opportunity for value-seeking investors, the recent insider selling and low financial strength score suggest that potential risks should be carefully considered before making investment decisions.

For the complete analysis, visit the HDFC Bank Ltd HDB stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is HDB's GF Score™?

HDB has a GF Score™ of 76/100, indicating that it is above average compared to other stocks, suggesting a potential for higher long-term returns.

Is HDB overvalued or undervalued?

HDB is currently undervalued, with a GF Value™ estimate of $31.56 compared to its market price of $24.20, indicating a 23.3% upside.

What is HDB's P/E ratio?

HDB's P/E (TTM) is 15.3x, which is significantly lower than its 5-year median P/E of 20.4x, suggesting that the stock is trading below its historical valuation levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

HDFC Bank shares declined on Wednesday after a newspaper report alleged that India’s biggest private lender made payments to a Maharashtra state department to secure large deposits, raising fresh questions over governance at the bank.

The stock fell as much as 2% and was trading 1.9% lower at 764.20 rupees as of 10:40am in Mumbai.

The benchmark BSE Sensex was little changed.

The Indian Express reported that HDFC Bank paid 450 million rupees to Maharashtra State Road Development Corporation and booked the transfers as marketing expenses.

HDFC Bank did not immediately respond to an emailed request for comment.

The allegations have put renewed attention on the bank’s internal controls, legal review and leadership transition process.

According to the Indian Express report, the alleged payments were made to attract large deposits from the state-run entity.

The report also alleged that Chief Executive Officer Sashidhar Jagdishan was aware of the dealings.

If confirmed, such payments could raise questions over whether a bank effectively offered additional benefits to secure deposits outside normal interest-rate terms.

Banks are expected to treat depositors consistently within the framework of applicable rules. Any suggestion that payments were routed through marketing expenses to win deposits could attract closer scrutiny from regulators and investors.

Legal review remains under wayThe latest report comes against an already sensitive governance backdrop for HDFC Bank.

Earlier media reports about alleged lapses had prompted the lender to engage legal firms to review certain practices.

Those firms had not found any material deviation from the bank’s practices so far, according to the supplied details, though the review remains ongoing and no final conclusion has been reached.

That leaves investors waiting for clarity on whether the review identifies any governance concerns, and whether the bank issues a detailed response to the latest allegations.

The stock has fallen 9.5% since the chairman’s resignation on March 19, adding to market sensitivity around governance and leadership issues.

The allegations also come as investors watch the next steps in Jagdishan’s reappointment process.

His three-year term is due to end in October, and the reappointment application has not yet been filed with the Reserve Bank of India.

Any regulatory concern arising from the media report or the legal review could become important for shareholders assessing the timing and outcome of that process.

For now, the key questions are whether HDFC Bank provides a detailed rebuttal or clarification, whether the legal review reaches a firm conclusion, and whether the RBI seeks additional information.

The near-term focus is likely to remain on the bank’s response, the outcome of the governance review and any regulatory reaction to the reported payments.

Until then, the shares may remain vulnerable to further headlines around governance and management continuity.

Shares of Indian banks rose more than 1% on Tuesday, making them the top-performing sectoral gainers after the Reserve Bank of India issued detailed guidelines for a concessional foreign exchange swap facility that lenders can use for overseas borrowings.

The move forms part of a broader package of measures announced by the central bank to attract foreign capital into the country at a time when India's economy is facing growth and inflation challenges.

The measures also come as the rupee remains under pressure from rising crude oil prices and sustained outflows from domestic equity markets.

The Nifty Bank index advanced 1.2% at 10:18 am IST in Mumbai, outperforming the broader market.

The benchmark Nifty 50 index was up 0.2% during the same period.

Among major lenders, State Bank of India and HDFC Bank gained 0.7% and 0.1%, respectively.

ICICI Bank rose 1.4%, emerging as the top performer among private sector lenders and helping the private banks index gain 1.1%.

The rally followed a mixed performance for banking stocks in recent sessions.

The banking index had risen 0.4% on Friday before declining 0.8% on Monday.

Under the RBI's framework, the concessional swap facility will remain available through September 30.

The facility is intended to compensate banks for hedging costs associated with three- to five-year foreign currency non-resident deposits.

Market participants appeared to welcome the additional clarity provided by the central bank.

Citi Research said, "This is likely to be treated as an additional announcement by the markets as there was no full clarity on this last Friday."

The brokerage added that the measure could generate overseas borrowings worth between $25 billion and $30 billion.

Jefferies projected even larger capital inflows.

According to the brokerage, overall inflows could reach $50 billion to $70 billion following the RBI's decision to allow banks to offer leverage on deposits made by non-residents.

According to ICICI Securities, the latest measures could strengthen banks' liability profiles by increasing the share of stable medium-term foreign currency deposits while reducing dependence on domestic deposit mobilisation.

The move comes at a time when lenders have been facing intense competition for deposits.

Households have increasingly been directing savings toward equities and other asset classes, creating challenges for banks seeking to raise funds through traditional deposits.

Despite Tuesday's gains, banking stocks have faced pressure this year.

The bank index has declined 8.2% so far, while the benchmark Nifty has fallen 11.4%.

Alongside the forex swap facility, the RBI announced several measures aimed at encouraging foreign investment and improving access to overseas capital.

Among the key initiatives, all new issuances of 15-year, 30-year, and 40-year government bonds will be included under the Fully Accessible Route.

According to the RBI, bonds in this category are already part of three global bond indexes.

The central bank said the move is expected to improve accessibility for foreign investors and could increase participation in India's government debt market.

In another significant policy change, limits relating to short-term investments, concentration norms, and individual securities applicable to foreign investment under the general route will be removed.

RBI Governor Sanjay Malhotra said the latest measures, along with tax benefits announced by the government earlier in the day, are expected to support greater foreign participation in government borrowing programmes.

The combined measures underscore the central bank's efforts to attract higher dollar inflows, support financial markets, and strengthen funding avenues for both the government and the banking sector.