HDFCBANK

HDFC Bank Limited

HARAM — SCREEN DOES NOT PASSstock

Is HDFCBANK Halal?

Major Indian bank — interest-based lending core.

What You Should Know

HDFC Bank's FY2025-26 consolidated annual report reports INR 4,908,040.84 crore of assets, INR 588,484.55 crore of borrowings, INR 311,926.05 crore of cash and bank balances, INR 1,280,216.29 crore of investments, INR 3,050,783.23 crore of advances and INR 495,462.81 crore of total income. Debt/assets is 11.99%, liquidity/assets is 32.44%, advances-plus-cash/assets is 68.51% and net interest income is 25.97% of total income; conventional banking independently fails the qualitative screen.

⚠️ Concerns

  • Interest-based lending and deposits are the core business model
  • Advances-plus-cash/assets is 68.51% under the illustrative asset proxy
  • Net interest income is 25.97% of total income
  • Treasury, securities and conventional finance operations require no substitute ratio-based permissibility claim

Current quantitative Sharia screen

Based on annual-report figures for the period ended 2026-03-31; calculated 2026-07-15.

INR · crore
Interest-bearing debt / assets
11.99%Within limit
Below 33.333% under FTSE Yasaar

588,484.55 / 4,908,040.84

Cash + interest-bearing securities / assets
32.44%Within limit
Below 33.333% under FTSE Yasaar

1,592,142.34 / 4,908,040.84

Receivables + cash / assets
68.51%Above limit
Below 50% under FTSE Yasaar

3,362,709.28 / 4,908,040.84

Non-compliant income / revenue
25.97%Above limit
No more than 5% under FTSE Yasaar

128,686.03 / 495,462.81

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 11.99%, liquidity/assets is 32.44%, advances-plus-cash/assets is 68.51% and net interest income is 25.97% of total income; the financing-asset and income proxies fail alongside the business screen.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Liquidity/assets is 32.44% and advances-plus-cash/assets is 68.51%, above the examined total-assets limits; the conventional-bank activity also fails independently.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Fails

Debt/assets is 11.99% and liquidity/assets is 32.44%, below the examined Malaysia financial limits; this is an illustrative calculation, not an official classification, and the conventional-bank activity fails independently.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A licensed market-cap series is not stored; the conventional-bank activity and asset-based financial illustration already fail.

Business-activity disclosure

HDFC Bank's core activities are conventional banking, deposits, underwriting, advances and interest-based lending. The business activity independently fails the prohibition on riba regardless of the ratio illustration.

Limitation: The asset-based ratios are not a substitute for a bank-specific Sharia ruling; advances, deposits and bank investments are presented to make the calculation reproducible.

Purification

Net interest income is disclosed, but no purification treatment can make a conventional interest-based bank permissible under the activity screen.

Inputs, assumptions and primary sources
  • Amounts are INR crore from HDFC Bank's FY2025-26 consolidated annual report.
  • Borrowings are INR 588,484.55 crore; cash and balances with banks total INR 311,926.05 crore; investments total INR 1,280,216.29 crore.
  • Advances total INR 3,050,783.23 crore and are used as the receivables/financing-asset proxy for the asset-ratio illustration.
  • Consolidated total income is INR 495,462.81 crore; net interest income of INR 128,686.03 crore is used as the disclosed interest-income proxy. The conventional-bank business screen fails independently.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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