SBI or HDFC Bank: Where’s the Bigger Payout for Investors?

The banking sector is full of activity as both the State Bank of India (SBI) and HDFC Bank have announced their Q4 FY25 results and dividends. Investors are now wondering which stock could be the better option going forward. Let’s look at three important points to help make that decision.

Dividend Comparison: Who’s Paying More?

SBI surprised everyone by announcing a final dividend of ₹15.90 per share – its highest in over 10 years. The last time SBI gave such a high payout was in 2013. The record date for this dividend is May 16, and it will be paid on May 30.

HDFC Bank, on the other hand, declared a ₹22 per share dividend for FY25. It has been increasing its dividends over time, paying ₹19.50 in 2024 and ₹19 in 2023. The record date this year is June 27.

Read More, Coforge Q4 FY25 Results: Net Profit Grows 17% YoY, Declares ₹19 Dividend.    

Q4 FY25 Results: How Did They Perform?

SBI’s Q4FY25 net profit was ₹18,643 crore – down 10% from last year. However, it showed strength in other areas like an 8.8% rise in operating profit and a growth in net interest income (NII) to ₹42,775 crore.

HDFC Bank posted a net profit of ₹17,616 crore for the same quarter, which is a 6.7% increase from last year and 5.3% higher than the previous quarter. Its NII rose by over 10% to ₹32,065.8 crore. The bank also earned ₹12,003 crore from fees and commissions and maintained strong net interest margins of 3.54% on total assets.

Share Price Movement

SBI’s share price was at ₹775.45, down nearly 2% in intraday trade. Over the past week, it dropped by 3%, and over the past 6 months, it fell by 9%. Even on a year-to-year basis, it’s down 4%, with a 2% fall so far in 2025.

HDFC Bank’s stock has performed much better. It has gained 10% in the past month, another 10% over the last six months, and jumped 27% over the past year. In 2025 alone, it’s already up by 8%.

Conclusion

Both SBI and HDFC Bank present strong investment opportunities, but they cater to different investor preferences. If you’re looking for a higher dividend payout, SBI stands out with its impressive ₹15.90 per share, marking a rare high in recent years. However, for investors focused on growth and consistent stock performance, HDFC Bank is the clear winner, showing strong profit growth and a solid stock price increase. Ultimately, your choice will depend on whether you prioritise dividends or capital appreciation in your investment strategy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.                                                                     

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