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Re:

HDFC Bank vs. YES Bank: How to Compare Their Stocks

HDFC Bank is far larger and reported stronger capital and RoA figures; YES Bank has improved but carries distinct funding and execution monitorables. Operating data alone cannot identify the better-valued stock.
From TheFinanceBase Team6 min to read
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HDFC Bank is much larger and reported stronger capital ratios and return on assets than YES Bank in the latest figures here. YES Bank has improved profitability and asset quality, but its execution, funding and capital considerations remain important. Neither set of operating figures tells you which stock is cheaper or likely to outperform: that requires a same-date valuation comparison.

What does the comparison show about the banks?

The latest broadly comparable balance-sheet snapshot identified here is June 30, 2026 (Q1 FY27). The figures below are reported by HDFC Bank and, for YES Bank, by CRISIL Ratings. They show a large difference in scale, but not every measure uses the same definition.

Measure HDFC Bank YES Bank
Advances, June 30, 2026 Gross advances of ₹30,608 billion, up 15.4% year over year; advances under management grew 12.4%. HDFC Bank, Q1 FY27 results. Net advances of ₹2,85,118 crore, up about 18% year over year. CRISIL Ratings, August 4, 2026.
Deposits, June 30, 2026 End-period deposits of ₹31,708 billion, up 14.7% year over year. HDFC Bank, Q1 FY27 results. Deposits of ₹3,15,373 crore, up about 14% year over year. CRISIL Ratings, August 4, 2026.
Gross NPA ratio, June 30, 2026 1.17% of gross advances; the bank separately reported 0.91% excluding agricultural-segment NPAs. HDFC Bank, Q1 FY27 results. 1.3%; CRISIL Ratings, August 4, 2026.
CET1 ratio, June 30, 2026 17.4%; the bank reported a total capital adequacy ratio of 19.6% and Tier 1 CAR of 17.8%. HDFC Bank, Q1 FY27 results. 14.0%; CRISIL Ratings, August 4, 2026, also reported Tier 1 at 14.0% and total capital adequacy at 15.1%.

₹1 billion equals ₹100 crore, but do not use the advances row to calculate an exact size multiple: HDFC’s figure is gross advances and YES Bank’s is net advances. Gross and net measures are not interchangeable. The table also mixes HDFC Bank disclosures with a CRISIL rating analysis of YES Bank; use the original definitions when checking a more detailed comparison. HDFC’s filings are available through its financial results page; the cited Q1 FY27 filing is here. CRISIL’s YES Bank rationale contains its June 2026 figures and analysis.

Scale matters to a bank’s competitive position, but absolute deposits, loans and profits do not tell you what an investor pays for each rupee of earnings or book value. For a stock comparison, pair operating measures with valuation and risk rather than treating size as a buy signal.

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How should you compare their deposit franchises?

Deposits fund lending, so growth and stability matter alongside the cost of attracting funds. CASA—current and savings account deposits—as a share of deposits is one useful indicator, not a complete verdict on funding quality.

  • Growth: HDFC Bank’s end-period deposits grew 14.7% year over year in June 2026, while CASA deposits grew 9.4%. YES Bank deposits grew about 14% year over year, according to CRISIL’s June 2026 figures.
  • Mix: CASA was 32.3% of HDFC Bank deposits on June 30, 2026. YES Bank’s CASA ratio was 32.7%, down from 35.1% on March 31, 2026. The similar June percentages therefore do not tell the whole story: the trend and composition differ.
  • Funding beyond deposits: CRISIL reported that retail term deposits plus CASA made up about 65% of YES Bank’s deposits on June 30, 2026, and that non-deposit funding was 18% of total funding. It described deposit stability and granularity as positive developments while noting the non-deposit share remained higher than at larger private-bank peers.
  • Cost and concentration: Track the cost of deposits and whether funding comes from a broad, stable depositor base. A bank can grow deposits while paying more to attract them; CASA alone does not show the full cost or concentration risk.

For HDFC Bank, time deposits grew faster year over year than CASA deposits in the reported June 2026 period. That is a reason to follow deposit mix and funding costs, not by itself evidence of a problem.

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What do the asset-quality figures leave out?

Gross and net non-performing asset (NPA) ratios are snapshots of loans already classified as troubled. They are useful, but backward-looking: they do not show by themselves how much new stress is entering the loan book or how losses may develop.

HDFC Bank reported a gross NPA ratio of 1.17% and net NPA ratio of 0.41% at June 30, 2026. Its separately reported 0.91% gross NPA ratio excludes agricultural-segment NPAs, so it should not be compared with another bank’s unadjusted headline ratio. CRISIL reported YES Bank’s gross NPA ratio at 1.3% on that date, unchanged quarter over quarter and down from 1.6% on March 31, 2025. On these reported headline figures, HDFC’s gross NPA ratio was modestly lower; that alone does not establish which loan book is safer.

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To look beyond the headline, compare:

  • Fresh slippages—the loans newly turning into NPAs—and whether they are rising or falling.
  • Provisions set aside for expected losses, recoveries from stressed borrowers, and credit costs over time.
  • Which borrower segments are contributing to trouble, rather than assuming all loan categories carry the same risk.

CRISIL noted improvement in YES Bank’s FY26 slippages but identified retail slippages, particularly personal loans, as a monitorable. That makes portfolio composition and the direction of newer stress important alongside the reported NPA ratio.

How should you read capital and profitability together?

Capital ratios indicate a bank’s loss-absorbing buffer relative to its risk-weighted assets. They help frame resilience, but a higher ratio does not forecast a stock’s return; profitability, growth, asset quality and the price investors pay still matter.

At June 30, 2026, HDFC Bank reported CET1 of 17.4%, Tier 1 CAR of 17.8% and total capital adequacy of 19.6%, against a regulatory requirement of 11.9%. CRISIL reported YES Bank’s respective ratios at 14.0%, 14.0% and 15.1%. CRISIL also discussed potential adverse CET1 sensitivity at YES Bank from the unresolved AT-I bond write-off matter. That is a specific capital uncertainty, not a certain outcome.

For FY26, HDFC Bank reported return on average assets (RoA) of 1.94%. YES Bank reported FY26 RoA of 0.8% and return on equity (RoE) of 7.0%; its Q4 FY26 RoA was 1.0%. The annual RoA figures show a profitability gap on the stated measure. YES Bank’s improvement is from a lower base, and CRISIL identifies scaling high-quality retail and SME portfolios while maintaining asset quality as important to its execution.

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YES Bank’s FY26 results release quotes Managing Director and CEO Vinay M. Tonse describing the year as ending “on a strong footing” and citing a Q4 RoA of 1.0%, a 20-basis-point improvement in NIMs, a better cost-to-income ratio and its lowest GNPA and NNPA levels since FY20. This is management’s account of performance, not an independent assessment. The release is available here; HDFC Bank’s FY26 filing, including reported returns and bonus-share accounting, is here.

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How can you compare the stocks’ valuations?

Operating quality and stock value are separate questions. A strong bank can be an unattractive investment at an excessive price, while a weaker bank may already have substantial risks reflected in its valuation. No same-session market close, P/E or price-to-book comparison is established in the figures above, so they do not support calling either stock cheap, expensive or the better buy.

  1. Choose one market date. Use each bank’s share price from the same trading session so market moves do not distort the comparison.
  2. Use consistent metrics. Compare price-to-book using the same book-value basis and P/E using comparable earnings periods. Check whether extraordinary items or accounting differences affect the earnings figure.
  3. Align per-share data with corporate actions. HDFC Bank’s FY26 filing says its bonus share issuance is reflected retrospectively in per-share data. Confirm that price and per-share figures are adjusted consistently before calculating multiples.
  4. Interpret the multiple in context. A lower multiple is not automatically a bargain. Consider whether differences in profitability, capital, credit costs, deposit funding, growth prospects or execution risk help explain it.

Until those inputs are matched and verified, treat valuation as unresolved rather than inferring it from balance-sheet size or the operating ratios here.

What risks should shape an investor’s comparison?

  • YES Bank execution: Growth in retail and SME lending needs to be achieved while preserving underwriting quality; CRISIL flags this challenge and retail slippages as monitorables.
  • YES Bank funding and capital: CRISIL’s reported 18% non-deposit funding share and the potential CET1 sensitivity related to the AT-I bond matter warrant attention.
  • HDFC Bank funding mix: Its June 2026 CASA share and faster growth in time deposits than CASA make deposit mix and funding costs worth monitoring.
  • Banking and market conditions: Interest rates, competitive deposit pricing, credit costs, regulation, governance and investor expectations can alter results and valuations. None is captured by a single quarter-end ratio.
  • Measurement choices: Do not combine gross with net advances, standalone with consolidated accounts, or quarter-end balances with average balances without labeling the distinction.

For additional filings, HDFC Bank maintains a results index, and YES Bank lists its annual reports on its annual reports page. Use the relevant reporting period and definitions when updating a comparison.

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