HDFC Bank dividend history, ICICI Bank comparison, share price targets by 12 brokers

HDFC Bank Ltd has announced a final dividend per share of Rs 13, taking its total FY26 dividend to Rs 15.50 per share, which included a special interim dividend of Rs 2.50 per equity share announced earlier. This was the lowest total dividend for a financial year declared by the bank since FY22. Analysts are largely positive on HDFC Bank fundamentals after its Q4 results. But they believe a clarity on the current MD CEO succession remains a key monitorable. A few gave the stock a valuation discount of up to 25 per cent discount to ICICI Bank, citing its relatively lower growth.

HDFC dividend history
HDFC Bank said the final dividend will be subject to shareholders' approval at the forthcoming annual general meeting, as it set Friday, June 19,  as the record date for determining the investor eligibility. 

The largest private bank had announced dividends of Rs 22 per share FY25, Rs 19.50 per share in FY24 and Rs 19 per share in FY23. In FY22, it announced a total dividend of Rs 15.50 per share, as per data compiled from corporate database AceEquity. HDFC Bank's dividend yield stood in the range of 1.05-1.35 per cent in the past four financial years. 

MD & CEO succession

Axis Securities in a note said amid limited opportunities for net interest margin (NIM) expansion, the bank’s focus remains on improving return on asset (RoA) through leveraging investment to drive operational efficiency and maintain benign credit costs. It said leveraging synergy benefits, maintaining healthy loan growth and sustaining productivity gains will remain critical to delivering consistent earnings growth. 

"Clarity on the current MD CEO succession remains a key monitorable. We expect HDFC Bank to consistently deliver a RoA/RoE of 1.8-1.9 per cent/14-16 per cent. We believe that at current valuations the risk-reward is favourable and the downside appears limited," it said while suggesting a target of Rs 1,020 on the stock.

HDFC Bank's Managing Director & CEO Sashidhar Jagdishan's current term is scheduled to end in October 2026. ICICI Securities said the recent sudden exit of the part-time Chairman was a bit intriguing but the brokerage tends to see this as a one-off inter-personal issue without material impact on business financials. 

"While the merger-related complexities could be higher than those earlier anticipated by the incumbent MD & CEO, we believe his full-term renewal is critical," ICICI Securities said while suggesting a target of Rs 1,080 for the stock.  

HDFC Bank vs ICICI Bank 
Anand Rathi said it continues to prefer ICICI Bank over HDFC Bank despite valuation premium, as it is better placed to navigate the growth against margin trade-off, aided by high balance sheet liquidity and lower cost of funds. 

"That said, the recent stock correction has improved the risk-reward for HDFC Bank. We upgrade our rating on HDFC Bank to Buy with a target price of Rs 967," it said. 

JM Financial maintained 'ADD' on HDFC Bank and revised its target price to Rs 890 from Rs 850, valuing the core bank at 1.7 times estimated FY28 book value on a standalone basis. This, the broker said, is at 25 per cent discount to ICICI Bank, due to its relatively lower growth and RoE.    

For the March quarter, said SBI Securities, the deposit accretion was strong amid heightened competitive intensity, resulting in decline in the CD ratio. Margins remained stable while asset quality continues to be the best among peers, it said adding that the management expects the credit growth momentum to sustain into FY27, led by revival in retail segments and continued momentum in the small & mid-market segments. 

This brokerage has an open call in its Diwali pick report for a target price of Rs 1,110. 

HDFC Bank target prices
PL Capital trimmed its NIM and fee income estimates for FY27 and FY28.  It tweaked its target on the stock Rs 1,100 from Rs 1,150. 

HDFC Bank's asset quality remained the best-in-class with gross non-performing asset (NPA) ratio improving 9 basis points sequentially. The RBI’s mandate to unwind dollar positions led to subdued treasury income, Nuvama said.

Equirus Securities broadly retained its estimates for HDFC Bank. It rolled over its earnings estimates to March 2027 and suggested a target of Rs 1,160. 

Antique Stock Broking retained its 'Buy' rating with a revised target of Rs 1,055 from Rs 1,100 earlier.

"The chairman’s exit is largely behind us, but sentiment remains cautious. We reiterate ‘BUY’ but cut FY27E EPS by 3 per cent and reduce our target and valuation multiple to Rs 1,050/2.3 times BV FY27E from Rs 1,170/2.7 times, given the sharp fall in stock and limited visibility of near-term rerating," Nuvama said.

MOFSL said HDFC Bank posted an in-line quarter, characterised by healthy business growth, net interest margin (NIM) expansion and robust asset quality. Loan growth was healthy, led by corporate and SME loans, while retail loan growth was modest. 

"We expect NIMs to see a gradual improvement, with gradual retirement of high-cost borrowings and an improvement in operating leverage, which will support return ratios over the coming years. We largely maintain our earnings estimates and expect HDFCB to deliver FY27E RoA/RoE of 1.84 per cent/14.4 per cent. Reiterate BUY with a target of Rs 1,100," it said.

Systematix also maintained 'Buy' rating for HDFC Bank with an unchanged target price of Rs 960. It values the standalone bank at 1.9 times on its estimated FY28 adjusted book value per share of Rs 438 for a return on equity (RoE) profile of 14 per cent for FY27E. 

Nirmal Bang Institutional Equities said it is positive on HDFC Bank for the long term due to its best-in-class asset quality, growth potential (because of a good capital position), potential for margin improvement and merger synergies in the long term. It gave a target of Rs 1,069 on the stock.