HDBBULLISH

Return on Equity (ROE)

13.8%

Higher than 52% of Financial Services sector peers

Updated 163h ago

Sector Performance

52th percentile

HDB

13.8%

Sector Median

12.4%

Sector Avg

17.4%

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Deep Analysis

HDFC Bank's Return on Equity (ROE) of 13.8% means the bank generated ₹13.80 in profit for every ₹100 of shareholder equity over the past year.

This is above the Financial Services sector median of 12.4%, placing HDFC Bank in the 52nd percentile among its peers — slightly better than half the sector. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 0.7% from the prior quarter's 13.9%. The current ROE level is above the sector average, yet the slight quarterly decrease signals a small erosion in profitability momentum. For an investor, this combination suggests modest outperformance paired with a minor near-term headwind, not a dramatic risk. This metric supports the overall BULLISH verdict, as the ROE remains above the sector median and the drop is limited.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about HDB?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does HDB's Return on Equity (ROE) compare to its sector?

HDB's Return on Equity (ROE) of 13.8% compares to a Financial Services sector median of 12.4%, placing it in the 52th percentile.

Who are HDB's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: RF (11.9%), HSBC (11.6%), PNC (11.4%), GOLD (10.8%), PRU (10.7%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.