Introduction If Indian banking had a Hogwarts, HDFC Bank would’ve been the golden child of Gryffindor—disciplined, ambitious, and always a few spells ahead of the rest. For over a decade and a half, it wore the crown of consistency, profitability, and pristine asset quality. But as it stands in 2025, the question is—does it still ace the class, or is it now that kid who peaked in high school?
In this article, we’ll run through HDFC Bank’s performance over the last 15 years—from 2010 to 2025—and try to decode if the country’s once-flawless financial wizard still has its wand working.
The Metrics: CAGR, NIMs, and the Magic Numbers
Let’s begin with the cold hard facts (served hot, of course):
| Year | Net Profit (INR Cr) | Advances Growth YoY (%) | Net Interest Margin (NIM %) | GNPA (%) | ROE (%) |
|---|---|---|---|---|---|
| 2010 | 3,926 | 28 | 4.2 | 1.4 | 17.8 |
| 2015 | 10,215 | 21 | 4.3 | 1.0 | 18.3 |
| 2020 | 26,257 | 20 | 4.4 | 1.3 | 16.5 |
| 2022 | 38,053 | 14 | 4.1 | 1.2 | 15.8 |
| 2024 | 55,600 | 13 | 3.9 | 1.3 | 14.7 |
Notice something? The numbers are still strong, but the slope’s getting gentler. It’s like watching Virat Kohli in his late 30s—still great, just not godlike.
Merger Mania: HDFC Ltd + HDFC Bank = Meh?
The 2023 mega-merger with HDFC Ltd was hyped like a Bollywood blockbuster. Marketed as “India’s answer to JP Morgan Chase,” it promised cross-selling, scale, and a balance sheet so big it could moonlight as a cricket stadium.
What actually happened? Operational integration took longer than expected, cost synergies looked more like wishlist items, and the pressure to maintain NIMs mounted. While the mortgage book added bulk, it also diluted the Bank’s ROA and NIMs. The stock price reflected this skepticism—range-bound and moody, like your ex who won’t text back.
Digital Transformation: The Tech that Roared… and Then Snored
HDFC Bank was once miles ahead in digital banking. Remember the NetBanking era where logging in didn’t require prayers and three OTPs? But in the age of UPI and fintech, its app experience is now more 2015 than 2025. Competitors like ICICI Bank, Axis Bank, and even neobanks like Jupiter and Fi are catching up fast.
The Bank’s tech investments remain strong—cloud migration, AI-driven analytics, and chatbot rollouts—but customer delight? Not always there.
Market Cap Magic: From Small Giant to Big Stumbler
From a market cap of ~INR 1 lakh crore in 2010 to over INR 10 lakh crore in 2024, HDFC Bank has delivered a ~20% CAGR. That’s heroic. But since 2022, returns have been muted. The Nifty Bank index is up 40% since 2022, but HDFC Bank has moved up only ~18%, underperforming its peers.
So why the drag?
- Merger digestion blues
- Valuation fatigue
- Increased competition
- Margin pressures from higher cost of funds post-COVID liquidity tightening
The Stock: Still a Mutual Fund Darling?
Yes, but with caveats. It remains one of the top holdings across large-cap funds and ETFs, but its once-supreme premium has eroded. The P/B ratio has come down from 5.5x in its heyday to around 2.8x now. The FII holding, once unwavering, has seen periodic trims.
Retail investors are now asking, “Should I switch to ICICI Bank or even SBI?”—questions that would’ve been heresy in 2015.
Final Report Card: Grade A, But With Remarks
HDFC Bank still deserves applause. Its fundamentals are solid, the risk culture remains one of the best, and the management (despite the post-Aditya Puri transition) has kept the ship steady.
But it’s no longer the untouchable superstar. It’s the veteran with a strong legacy, but one that needs reinvention to stay ahead.
Verdict: Still the teacher’s pet, but now needs to work harder to top the class.
