HDFC BankMEX:HDBN 66 ROA % is 1.43% as of Mar. 2025, which is 20% below its 10-year median of 1.78. GuruFocus rates MEX:HDBN with a GF Score™ of 66/100 and a GF Value™ of MXN501.84 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,529 Banks companies, HDFC Bank ranks better than 75.93% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. HDFC Bank's annualizedNet Income for the quarter that ended in Mar. 2025 was MXN158,399 Mil.
HDFC Bank's average Total Assets over the quarter that ended in Mar. 2025 was MXN11,067,052 Mil. Therefore, HDFC Bank's annualized ROA % for the quarter that ended in Mar. 2025 was 1.43%.
The historical rank and industry rank for HDFC Bank's ROA % or its related term are showing as below:
MEX:HDBN'
s ROA % Range Over the Past 10 Years
Min: 1.46 Med: 1.78 Max: 2.11
Current: 1.46
During the past 13 years, HDFC Bank's highest ROA % was 2.11%. The lowest was 1.46%. And the median was 1.78%.
MEX:HDBN's ROA % is ranked better than 75.93% of 1529
companies
in the Banks industry
Industry Median: 0.98
vs MEX:HDBN: 1.46
HDFC Bank (MEX:HDBN) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Mar. 2025) net income data. The Revenue data used here is two times the semi-annual (Mar. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
HDFC Bank ROA % Related Terms
HDFC Bank ROA % Historical Data
* Premium members only.
The historical data trend for HDFC Bank's ROA % 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.
For the Banks - Regional subindustry, HDFC Bank's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Banks Industry
For the Banks industry and Financial Services sector, HDFC Bank's ROA % distribution charts can be found below:
* The bar in red indicates where HDFC Bank's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
HDFC Bank (MEX:HDBN) has a ROA % of 1.43% as of Mar. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on HDFC Bank and its competitors. This is 20% below median its historical median of 1.78. Over the past decade, HDFC Bank's ROA % has ranged from 1.46 to 2.11. According to the industry distribution chart, HDFC Bank ranks #368 out of 1529 companies in the Banks industry, placing it in the top 24.1%.
Is HDFC Bank's ROA % too high?
HDFC Bank's current ROA % of 1.43% is 20% below median its 10-year median of 1.78. Over the past 10 years, this metric has ranged from a low of 1.46 to a high of 2.11. The Banks industry median ROA % is 0.98. HDFC Bank's value of 1.43% is 45.9% above this industry median. Based on the distribution chart, HDFC Bank ranks #368 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 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HDFC Bank's ROA % compare to PNC?
According to the Banks industry distribution chart, HDFC Bank ranks #368 out of 1529 companies for ROA %. This places HDFC Bank in the top 24% of its industry — outperforming the majority of peers. The industry median ROA % is 0.98. HDFC Bank's value of 1.43% is 45.9% above this benchmark. Historically, HDFC Bank's own ROA % has ranged from 1.46 to 2.11 over the past decade. While the company's 10-year median is 1.78 vs. the industry median of 0.98, 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 ROA % for a Banks company?
The median ROA % among Banks companies is 0.98, based on 1,529 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HDFC Bank's current ROA % of 1.43% is 45.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on HDFC Bank and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDFC Bank's current ROA % is 1.43%, which is 20% below median its own 10-year median of 1.78. 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 (MEX:HDBN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN501.84, compared to a current price of MXN410.00 — trading 18.3% below its estimated fair value. The current ROA % is 1.43%, which is 20% below median its 10-year median of 1.78 and 45.9% above the Banks industry median of 0.98. HDFC Bank's overall GF Score™ is 66/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For HDFC Bank (MEX:HDBN), the current ROA % is 1.43% 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 (MEX:HDBN) Overvalued in 2026?
Based on GuruFocus' analysis, HDFC Bank stock appears to be undervalued.
The current stock price of MXN410.00 is trading 18.3% below its estimated GF Value™ of MXN501.84.
GuruFocus considers HDFC Bank to be Modestly Undervalued.
Key valuation signals for MEX:HDBN:
ROA %: 1.43% (20% below median its 10-year median of 1.78)
GF Value™: MXN501.84 vs. price of MXN410.00 (18.3% below fair value)
Industry Position: 45.9% above the Banks median (#368 of 1529)
No single metric tells the full story. See the MEX:HDBN 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.
66GF Score
Get the complete analysis for MEX:HDBN
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:HDBN has been successfully added to your 
