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HDFC BankFRA:HDFA 70 Return-on-Tangible-Asset is 1.52% as of Mar. 2025, which is 16% below its 10-year median of 1.80. GuruFocus rates FRA:HDFA with a GF Score™ of 70/100 and a GF Value™ of €26.73 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,529 Banks companies, HDFC Bank ranks better than 78.68% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. HDFC Bank's annualizedNet Income for the quarter that ended in Mar. 2025 was €7,162 Mil. HDFC Bank's average total tangible assets for the quarter that ended in Mar. 2025 was €471,076 Mil. Therefore, HDFC Bank's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 was 1.52%.
The historical rank and industry rank for HDFC Bank's Return-on-Tangible-Asset or its related term are showing as below:
FRA:HDFA'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.56 Med: 1.8 Max: 2.12
Current: 1.57
During the past 13 years, HDFC Bank's highest Return-on-Tangible-Asset was 2.12%. The lowest was 1.56%. And the median was 1.80%.
FRA:HDFA's Return-on-Tangible-Asset is ranked better than 78.68% of 1529
companies
in the Banks industry
Industry Median: 1
vs FRA:HDFA: 1.57
HDFC Bank (FRA:HDFA) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
HDFC Bank Return-on-Tangible-Asset Related Terms
HDFC Bank Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for HDFC Bank's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:HDFA vs PNC, USB: Return-on-Tangible-Asset Comparison
For the Banks - Regional subindustry, HDFC Bank's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HDFC Bank Return-on-Tangible-Asset vs Banks Industry
For the Banks industry and Financial Services sector, HDFC Bank's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where HDFC Bank's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Mar. 2025) net income data.
What does a Return-on-Tangible-Asset of 1.52% mean?
HDFC Bank (FRA:HDFA) has a Return-on-Tangible-Asset of 1.52% as of Mar. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on HDFC Bank and its competitors. This is 16% below median its historical median of 1.80. Over the past decade, HDFC Bank's Return-on-Tangible-Asset has ranged from 1.56 to 2.12. According to the industry distribution chart, HDFC Bank ranks #326 out of 1529 companies in the Banks industry, placing it in the top 21.3%.
Is HDFC Bank's Return-on-Tangible-Asset too high?
HDFC Bank's current Return-on-Tangible-Asset of 1.52% is 16% below median its 10-year median of 1.80. Over the past 10 years, this metric has ranged from a low of 1.56 to a high of 2.12. The Banks industry median Return-on-Tangible-Asset is 1.00. HDFC Bank's value of 1.52% is 52% above this industry median. Based on the distribution chart, HDFC Bank ranks #326 out of 1529 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, HDFC Bank has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HDFC Bank's Return-on-Tangible-Asset compare to PNC and USB?
According to the Banks industry distribution chart, HDFC Bank ranks #326 out of 1529 companies for Return-on-Tangible-Asset. This places HDFC Bank in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.00. HDFC Bank's value of 1.52% is 52% above this benchmark. Historically, HDFC Bank's own Return-on-Tangible-Asset has ranged from 1.56 to 2.12 over the past decade. While the company's 10-year median is 1.80 vs. the industry median of 1.00, HDFC Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Banks company?
The median Return-on-Tangible-Asset among Banks companies is 1.00, based on 1,529 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HDFC Bank's current Return-on-Tangible-Asset of 1.52% is 52% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on HDFC Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Asset is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDFC Bank's current Return-on-Tangible-Asset is 1.52%, which is 16% below median its own 10-year median of 1.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HDFC Bank stock overvalued right now?
Based on GuruFocus' analysis, HDFC Bank (FRA:HDFA) is currently considered Modestly Undervalued. The stock's GF Value™ is €26.73, compared to a current price of €20.00 — trading 25.2% below its estimated fair value. The current Return-on-Tangible-Asset is 1.52%, which is 16% below median its 10-year median of 1.80 and 52% above the Banks industry median of 1.00. HDFC Bank's overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For HDFC Bank (FRA:HDFA), the current Return-on-Tangible-Asset is 1.52% as of Mar. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HDFC Bank (FRA:HDFA) Overvalued in 2026?
Based on GuruFocus' analysis, HDFC Bank stock appears to be undervalued.
The current stock price of €20.00 is trading 25.2% below its estimated GF Value™ of €26.73.
GuruFocus considers HDFC Bank to be Modestly Undervalued.
Key valuation signals for FRA:HDFA:
Return-on-Tangible-Asset: 1.52% (16% below median its 10-year median of 1.80)
GF Value™: €26.73 vs. price of €20.00 (25.2% below fair value)
Industry Position: 52% above the Banks median (#326 of 1529)
No single metric tells the full story. See the FRA:HDFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HDFC Bank Ltd is an Indian bank. It operates in the following segments: Treasury, Retail banking, Wholesale banking, and Other banking business. The maximum revenue for the company is generated from its Retail banking segment, which serves retail customers through its branch network and other channels. This segment raises customer deposits and provides loans and other services to customers using different product groups. Its other operations include providing wholesale banking services to corporates, government entities, and other enterprises, generating income from its treasury operations, and performing para-banking activities such as offering credit cards, debit cards, etc. Geographically, the company generates a majority of its revenue from its operations in India.
70GF Score
Get the complete analysis for FRA:HDFA
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