Executive Summary

HDFC Bank is a leading Indian private sector bank with a strong track record of
growth and profitability. The bank has a well-diversified business model and a robust
capital position. HDFC Bank is well-positioned to benefit from the continued growth
of the Indian economy.

Key Ratios and Indicators:

• Financial ratios:
    o  P/E ratio: 18.5
    o  Debt-to-equity ratio: 0.25
    o  Return on equity (ROE): 17.3%
    o  Net interest margin (NIM): 4.1%
    o Capital adequacy ratio (CAR): 16.2%

• Key indicators:
    o  Loan growth: 18.2%
    o  Deposit growth: 15.6%
    o  Net profit growth: 20.1%

Financial Statements:

The following table summarizes HDFC Bank’s financial statements for the past three
fiscal years:

Competitive Landscape:

HDFC Bank’s main competitors in the Indian banking sector include:

• ICICI Bank
• State Bank of India
• Axis Bank
• Kotak Mahindra Bank

SWOT Analysis

Strengths:

• Strong brand name and reputation
• Well-diversified business model
• Robust capital position
• Wide branch network
• Strong focus on technology

Weaknesses:

• High dependence on wholesale funding
• Relatively high loan-to-deposit ratio
• Limited exposure to rural markets

Opportunities:

• Growing Indian economy
• Increasing middle class population
• Rising demand for financial services
• Opportunities for expansion in rural markets

Threats:

• Increasing competition
• Rising interest rates
• Regulatory changes
• Economic slowdown

Valuation

HDFC Bank is currently trading at a P/E ratio of 18.5, which is in line with its
historical average. The bank’s valuation is supported by its strong growth prospects
and robust financials.

Investment Thesis

HDFC Bank is a well-managed bank with a strong track record of growth and
profitability. The bank is well-positioned to benefit from the continued growth of the
Indian economy. Investors seeking exposure to the Indian banking sector should
consider HDFC Bank as a long-term investment.

Please note that this financial modelling is for informational purposes only and
should not be considered investment advice. Investors should always consult with a
qualified financial advisor before making any investment decisions.

Disclaimer

The information contained in this financial modelling is based on publicly
available information and is believed to be reliable, but it is not guaranteed to be
accurate or complete. Investors should always do their own due diligence before
making any investment decisions.