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HDFC Bank (STU:HDFA) 5-Year RORE % : 11.26% (As of Mar. 2024)


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What is HDFC Bank 5-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. HDFC Bank's 5-Year RORE % for the quarter that ended in Mar. 2024 was 11.26%.

The industry rank for HDFC Bank's 5-Year RORE % or its related term are showing as below:

STU:HDFA's 5-Year RORE % is ranked better than
55.67% of 1403 companies
in the Banks industry
Industry Median: 11.32 vs STU:HDFA: 11.26

HDFC Bank 5-Year RORE % Historical Data

The historical data trend for HDFC Bank's 5-Year RORE % 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.

* Premium members only.

HDFC Bank 5-Year RORE % Chart

HDFC Bank Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.87 13.37 14.08 17.31 11.26

HDFC Bank Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
5-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.08 16.38 17.31 13.25 11.26

Competitive Comparison of HDFC Bank's 5-Year RORE %

For the Banks - Regional subindustry, HDFC Bank's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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's 5-Year RORE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, HDFC Bank's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where HDFC Bank's 5-Year RORE % falls into.



HDFC Bank 5-Year RORE % Calculation

HDFC Bank's 5-Year RORE % for the quarter that ended in Mar. 2024 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( 2.959-1.759 )/( 12.373-1.717 )
=1.2/10.656
=11.26 %

* 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2024 and 5-year before.


HDFC Bank  (STU:HDFA) 5-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


HDFC Bank 5-Year RORE % Related Terms

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HDFC Bank Business Description

Address
Senapati Bapat Marg, HDFC Bank House, Lower Parel (West), Mumbai, MH, IND, 400013
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.

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