The banking space is buzzing with action. The country’s largest private sector as well as the public sector giant declared quarterly numbers. As State Bank of India (SBI) and HDFC Bank announced their Q4 numbers and dividend, investor interest is peaking. While both banks have made headlines for different reasons, the question many are asking is – Which stock looks more attractive in the current market cycle?
Here are three key factors that could help you make that call-
Dividend Push: Which bank is rewarding shareholders more?
SBI has surprised the street with a final dividend of Rs 15.90 per share. This was the highest declared in over a decade by the bank. The last time SBI went this big was back in 2013, with a Rs 41.5 per share dividend. This time, the record date is May 16 and the payout is scheduled for May 30.
Meanwhile, HDFC Bank has announced a dividend of Rs 22 per share for FY25. The private lender has steadily raised its payouts over the years, delivering Rs 19.50 in 2024 and Rs 19 in 2023. The record date this year is June 27.
SBI Vs HDFC Bank: Q4FY25 performance
SBI’s net profit for the March quarter stood at Rs 18,643 crore, a 10% decline from the same quarter last year. But operationally, the bank held up well, posting an 8.8% year-on-year growth in operating profit, and a rise in net interest income (NII) to Rs 42,775 crore.
HDFC Bank in Q4FY25 reported a standalone net profit of Rs 17,616 crore, a 6.7% year-on-year rise and a 5.3% jump from the previous quarter. Net interest income rose over 10% YoY to Rs 32,065.8 crore, while other income, which includes fees and commissions, stood at Rs 12,003 crore. The bank reported a net interest margin of 3.54% on total assets and 3.73% on earning assets.
SBI Vs HDFC Bank: Share performance
State Bank of India share price was trading at Rs 775.45, down nearly 2% in intraday trade. Over the past five days, the stock has slipped around 3%. While it managed a modest 4% gain over the last month, the broader trend has been underwhelming with a 9% drop over six months and a 4% decline on a yearly basis. YTD in 2025, the stock has seen a 2% fall.
HDFC Bank, in contrast, has displayed a far more upbeat trajectory. The stock was trading flat with a minor dip of 0.2% in today’s session but has delivered a solid 10% gain over the past month. Over six months, the private banking giant has also risen 10%, and on a YoY basis, the share price of HDFC Bank have surged by 27%. So far in 2025, HDFC Bank has clocked an 8% gain.
