Debt-to-Equity Ratio
Higher than 59% of Financial Services sector peers
Updated 164h ago
Sector Performance
59th percentileHDB
1.11x
Sector Median
0.71x
Sector Avg
1.60x
Deep Analysis
HDFC Bank’s debt-to-equity ratio of 1.11x means that for every dollar of shareholders’ equity, the company has $1.11 in debt, measuring how much the bank relies on borrowed money versus its own capital.
Compared to sector peers, this ratio is above the Financial Services sector median of 0.71x, placing HDFC Bank in the 59th percentile — meaning it is more leveraged than about 59% of similar firms. The year-over-year change is not available, but the quarter-over-quarter change shows an increase of +11.0%, from 1.00x to 1.11x. A ratio above the median combined with a rising trend suggests the bank is taking on more debt relative to equity, which may increase financial risk, but it also signals potential expansion or higher returns on capital if the debt is used productively. This metric does not directly contradict the overall BULLISH verdict, as a moderate debt level in the banking sector can be normal — yet the rapid quarterly rise warrants monitoring for any further increases.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about HDB?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
How does HDB's Debt-to-Equity Ratio compare to its sector?
HDB's Debt-to-Equity Ratio of 1.11x compares to a Financial Services sector median of 0.71x, placing it in the 59th percentile.
Who are HDB's closest peers by Debt-to-Equity Ratio?
The closest Financial Services peers by Debt-to-Equity Ratio include: IBN (0.61x), COIN (0.59x), AMP (0.53x), HSBC (0.52x), COF (0.46x).
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
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1.11x
Sector Median
0.71x
Sector Avg
1.60x
How HDB's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.