The banking industry is currently abuzz with activity as two major players, State Bank of India (SBI) and HDFC Bank, unveil their quarterly results. With both institutions making significant announcements regarding their earnings and dividends, investors are keenly evaluating which stock might present a more appealing investment opportunity in today’s market landscape.
Dividend Insights: Who’s Offering More?
One of the most enticing factors for investors is the dividend payouts. SBI has made headlines by declaring a final dividend of ₹15.90 per share, the highest in over a decade. The last time SBI offered a dividend this substantial was back in 2013, when it paid out ₹41.5 per share. The record date for this dividend is set for May 16, with payments scheduled for May 30.
On the flip side, HDFC Bank has also announced a robust dividend of ₹22 per share for FY25. The lender has shown a consistent trend of increasing its payouts, having delivered ₹19.50 in 2024 and ₹19 in 2023. For this year, their record date is June 27.
Q4 FY25 Performance Comparison
When looking at the quarterly performance for Q4 FY25, SBI reported a net profit of ₹18,643 crore, reflecting a 10% decrease from the same period last year. However, SBI managed to maintain operational strength, achieving an 8.8% year-on-year growth in operating profit, alongside a rise in net interest income (NII) to ₹42,775 crore.
In contrast, HDFC Bank showcased a stronger performance, with a standalone net profit of ₹17,616 crore, marking a 6.7% increase year-over-year and a 5.3% rise from the previous quarter. Their NII also grew impressively, surpassing 10% YoY to reach ₹32,065.8 crore. Additionally, the bank generated ₹12,003 crore in other income, which includes fees and commissions, and reported a net interest margin of 3.54% on total assets and 3.73% on earning assets.
Stock Performance: A Comparative Analysis
In terms of share performance, SBI shares were trading at ₹775.45, experiencing a slight decline of nearly 2% during intraday trading. Over the past week, the stock has faced a 3% drop. Although it has shown a modest 4% gain in the last month, the six-month trend reveals a 9% decline, with an annual drop of 4%. Year-to-date in 2025, the stock has decreased by 2%.
Conversely, HDFC Bank has displayed a more positive trend. The stock was relatively stable today, with a minor dip of 0.2%, but it has achieved a commendable 10% increase over the past month. Over the last six months, it has also risen by 10%, and its share price has surged by 27% year-over-year. So far in 2025, HDFC Bank has recorded an 8% gain.
Conclusion
With these insights into dividends, performance metrics, and stock trends, investors are left to ponder which bank stock—SBI or HDFC Bank—might be the more attractive option in the current market environment. While both banks have their merits, each presents different opportunities and challenges for potential investors.
