HDFC Bank market share up by 68 bps in last 12 months

HDFC Bank has clocked market share gains over the past 12 months, but its valuations tell another story. The stock continues to underperform benchmark indices.

HDFC Bank has gained market share by 68 basis points in last 12 months when compared to 44 basis points for ICICI Bank, 42 basis points for Axis Bank, 16 basis points for Kotak Mahindra Bank. In the same period, SBI has seen a market share decline of 15 basis points. Interestingly, HDFC Bank's market share gain is comparable to 102 basis points for the other top three private banks.

HDFC Bank’s market share has moved from 10.11 percent to 10.79 percent in the last 12 months. Despite gaining market share, its valuations have corrected massively or perhaps, the highest amongst large banks. HDFC Bank's valuation parameter that is a price to book value has declined from 3.6 times last year to 2.6 times. This is the highest decline in valuations amongst large banks.