HDFC Bank vs SBI: Experts Split Post-March Crash
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Motilal Oswal Financial Services reshuffled its model portfolio, raising SBI weight by 100 basis points and cutting HDFC Bank exposure.
- HDFC Bank crashed more than 17% in March after former part-time Chairman Atanu Chakraborty resigned citing ethics concerns; the stock has since rebounded over 10% in the past week to a market cap of ~Rs 13 lakh crore and a P/E of 15.59.
- RBI Governor Sanjay Malhotra said there are no material governance or conduct concerns at HDFC Bank, and announced a comprehensive review of matters placed before bank boards following the crisis.
- SBI shares fell more than 18% in March as PSU lenders led the market decline, but rebounded sharply in April alongside PSB peers; the stock trades at a P/E of 11.20 with a ~Rs 10 lakh crore market cap and a 5% weekly gain.
- Vinod Nair of Geojit Investments said HDFC Bank appears more attractive from a valuation and risk-reward perspective, with post-merger synergies expected to support margin improvement, while SBI trades above historical multiples.
- Harshal Dasani of INVasset PMS said HDFC Bank suits a steady long-term approach while SBI offers higher upside with higher macro sensitivity, recommending a balanced allocation between the two.
Why it matters: The RBI's clean bill of health removed a key overhang on HDFC Bank, yet Motilal Oswal's 100-basis-point tilt toward the cheaper SBI signals institutions are positioning for the PSU cyclical trade. For retail investors, the expert split means the call now hinges on risk tolerance: stable compounding versus macro-sensitive upside.
