HDFC Bank vs SBI: Which Stock to Buy in Jan 2026?
The Indian banking sector is witnessing a dramatic “clash of titans” this January. On one side, we have State Bank of India (SBI), the public sector giant that has surged to record highs above ₹1,040. On the other side is HDFC Bank, the private sector leader that recently reported a robust Q3 profit of ₹18,654 crore yet finds its stock trading at a “discounted” price near ₹925.
The Case for HDFC Bank: The Value Buy
HDFC Bank is currently a favorite for “Value Investors.” Despite a 5% dip in share price over the last month, the bank’s fundamentals remain rock solid.
- Q3 Performance: Net profit jumped 11.5% YoY, beating most analyst estimates.
- Asset Quality: Gross NPAs remained stable at 1.24%, proving the bank’s management is handling the post-merger transition efficiently.
- Analyst View: 96% of market analysts have a “Buy” rating on HDFC, with target prices reaching as high as ₹1,200.
The Case for SBI: The Momentum King
SBI is the undisputed winner of the recent rally. It has outperformed the Nifty Bank index, driven by massive loan growth and expectations of a “blockbuster” Q3 result announcement in February.
- Record Highs: The stock recently touched ₹1,048, supported by strong buying from domestic institutional investors.
- Growth Driver: Analysts expect SBI’s net profit to surge significantly this quarter, potentially by over 60% compared to last year.
Where Should You Invest?
If you are looking for a long-term safe bet at a low entry price, HDFC Bank is the clear winner today. You are essentially buying a high-quality “Blue Chip” while it is on sale. However, if you want to ride the current market wave and don’t mind the high valuation, SBI continues to show strong upward momentum.
Here is the perfect table for your article. It uses the latest data from today, January 20, 2026, to give your readers high-value insights.
HDFC Bank vs SBI (January 2026)
| Feature | HDFC Bank (Private Sector) | SBI (Public Sector) |
| Current Price | ~₹924 | ~₹1,044 |
| Market Position | Value Buy (5% Monthly Dip) | Momentum Pick (New Record High) |
| Analyst Rating | 96% Buy Rating | 82% Buy Rating |
| Recent News | Q3 Profit beat (₹18,654 Cr) | Tenure extension for MD & Q3 rally |
| 52-Week High | ₹1,020 | ₹1,048 |
Prabha Gupta is a veteran journalist and civic thinker dedicated to the constitutional ideals of dignity and institutional ethics. With over thirty years of experience in public communication, her work serves as a bridge between India’s civil society and its democratic institutions. She is a prominent voice on the evolution of Indian citizenship, advocating for a national discourse rooted in integrity and the empowerment of the common citizen
