HDFC Bank

HDB

Market cap $169B

I continue to rate HDFC Bank as a 'Hold,' following my assessment of its recently announced operational update and preview of the upcoming results. HDB's loans expanded at a slower pace than its key Indian banking peers in 3QFY26, according to its latest quarterly business update. But I anticipate that its 3rd quarter earnings will still grow at a similar high-single-digit to low-teens level, similar to Q2, thanks to net interest margin improvement.

Emerging markets climbed over 25% in 2025 while trading at deep discounts to U.S.

Not owning Alibaba Group Holding Ltd. )(China, Consumer Discretionary sector) accounted for about a quarter of the underperformance. Among the top individual absolute contributors were Taiwan Semiconductor, Tencent, Contemporary Amperex Technology, Sea Ltd., and Nu Holdings. Among the top individual absolute detractors were MercadoLibre, Dino Polska, Globant SA, HDFC Bank, and Bank Central Asia.

Though positive on an absolute basis, Diamond Hill International Strategy portfolio modestly trailed the benchmark during the quarter. From a sector perspective, health care and information technology contributed most to relative performance, while financials and industrials detracted on a relative basis. Geographically, international businesses that are classified as US stocks were the largest positive contributors to relative performance.

Investors interested in Banks - Foreign stocks are likely familiar with HDFC Bank (HDB) and Commonwealth Bank of Australia Sponsored ADR (CMWAY). But which of these two companies is the best option for those looking for undervalued stocks?

I maintain my "Hold" rating for HDFC Bank with its mixed Q2 results. The positives include better asset quality and non-interest income, and the realization of M&A synergies. But NIM contraction, weak loan growth, and an elevated loan-to-deposit ratio remain concerns for HDB.

HDFC Bank Limited (NYSE:HDB ) Q2 2026 Earnings Call October 18, 2025 8:30 AM EDT Company Participants Srinivasan Vaidyanathan - Chief Financial Officer Sashidhar Jagdishan - MD, CEO & Director Kaizad Bharucha - Deputy MD & Director Conference Call Participants Mahrukh Adajania - Nuvama Wealth Management Limited, Research Division Chintan Joshi Kunal Shah - Citigroup Inc., Research Division Anand Swaminathan - BofA Securities, Research Division Rikin Shah - IIFL Research Abhishek Murarka - HSBC Global Investment Research Jayant Kharote - Axis Capital Limited, Research Division Ravi Purohit - Securities Investment Management Pvt Ltd Presentation Operator Ladies and gentlemen, good day and welcome to HDFC Bank Limited Q2 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.

HDFC Bank Ltd., India's largest private sector lender, reported a stronger-than-expected profit for the September quarter, supported by steady loan growth and improving asset quality, even as pressure on margins persisted.

Investors interested in stocks from the Banks - Foreign sector have probably already heard of Banco Santander-Brazil (BSBR) and HDFC Bank (HDB). But which of these two companies is the best option for those looking for undervalued stocks?

Investors looking for stocks in the Banks - Foreign sector might want to consider either HSBC (HSBC) or HDFC Bank (HDB). But which of these two stocks offers value investors a better bang for their buck right now?