Apr 27, 2018 4 min read

HDFC Bank: 3738.95% Return in The Last 15 Years

Despite the increasing uncertainty and volatile banking sector, HDFC Bank Ltd has performed unexpectedly.
The bank has delivered an absolute return of 3738.95% in the past 15 years which turned investment of Rs 1 lac into Rs. 38.40 lac. Still, the growth journey is unstoppable and you have an investment opportunity to get an attractive reward.

Read this blog to further investigate HDFC’s March Q4 ending results for FY 2018.

HDFC Bank has always been a benchmark in the Banking industry. It is one of the well-known banks for its ethics, customer support attitude, and past growth.

As the banking sector has recently experienced a struggling period, so, now, what investors are concerned about is to identify that whether HDFC Bank stocks had actually outer performed or not?

To examine this, let’s have an instant look at the Q4 financial results and its past performance.

Quarter 4 Results & Board Announcement

Recently, HDFC released its Q4 ending results and again, it has broken all the previously set standards by achieving an unbeatable net profit of 4,799 crores, 20% above than the corresponding quarter of last year. Looking at such wonderful growth, the board of directors declared dividend of Rs. 13 each share equivalent to 650% of the share's face value. The board has also approved the issue of Perpetual Debt Instruments, Tier II Capital, Bonds and Long-Term Bonds up to Rs. 50,000 crores in the upcoming 12 months through private placement.

Past Performance

Historical returns give a true indication to judge as to what extent the stock has exceeded investors’ expectations. To reveal the actual picture, we have looked at the trailing returns and operational performance for different time frames.

Unsurprisingly, the results were awesome, within 1-year, HDFC’s stock has rewarded investors handsomely with 31.9% return at a CAGR of 28.2% since the last 15-year. In the last FY 2017, the bank has earned 14.83% return on total equity. Its past track-record was really unbeatable that gives tough competition to its peers.

The table shows trailing returns as on April 24th, 2018


The table below represents operating performance of the last 10 calendar years


The table shows trailing returns as on April 24th, 2018

Have you ever thought that investment of just 1 lac 15-years back can create a corpus of over 35 lacs? Obviously, the answer is no and it seems unrealistic, but exceptions are always and everywhere and HDFC Bank is such an exception in the banking industry. It has delivered an absolute return of 3738.95% in the past 15 years which turned your Rs. 1 lac into Rs. 38.40 lac. Hence, investors who invested earlier were rewarded remarkably.

Still, the journey is not over and the investors who lag behind in the race do not need to worry. Despite the uncertainty in the banking sector, HDFC Bank’s stock has witnessed strong earning visibility and growth potential with strong fundamentals.

Currently, its stocks are traded in the range of Rs 1200 to Rs 1300 that might be costlier for a significant proportion of investors who are interested in buying a huge quantum.

Here, Mutual Fund is the best alternative available to you. It just requires a minimum investment of Rs 1000 and helps you in having a significant holding of HDFC Bank Ltd. Despite this, as banking sector is subjected to various market risks, thus instead of putting money solely into stocks, investment in mutual fund helps you diversify your risks across various sectors. It definitely helps you adjust your losses and rewards investors with good return percentage.

Top 10 Mutual Funds

Here is a list of top 10 mutual funds having the highest holdings of HDFC Bank Ltd in their portfolios:


All the above listed mutual fund schemes hold a sizeable equity stocks of HDFC Bank. Among all, SBI Magnum Balanced Fund that is a hybrid category fund secured the top position by having 7900000 shares. Axis Long Term Equity Fund earned highest return of 24.28% whilst ICICI Prudential Balanced Advantage Fund gained yield of 14.84%, still more than HDFC’s average return of 13%. Thus, for investors who are keen to invest in HDFC stocks, it is always a better option to choose the best mutual fund which holds a significant volume of HDFC Bank’s share. Moreover, inclusion of other stocks too from different sectors help you in diversifying your risks exposure and safeguard the return in downturn market.


HDFC’s Q4 earning results have shown exceptional growth along with strong earning visibility for the forthcoming period. So, investors who are willing to buy its shares, don’t waste time and invest today in the best mutual fund to have indirect ownership rights in HDFC Bank.

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