Side-by-side credit pricing comparison from Pillar 3 disclosures.
On a representative BBB+ EUR 25M 5-year term loan, HDFC Bank is the cheaper lender by 10bp in minimum spread. For a EUR 25M facility, that's EUR 23,958 per year.
| Metric | State Bank of India India |
HDFC Bank India |
|---|---|---|
| IRB approach | Standardised | Standardised |
| Cost-to-income | 54.0% | 40.5% |
| Effective tax rate | 25.0% | 25.0% |
| Avg corporate PD | 1.80% | 1.10% |
| Avg LGD unsecured | 45.0% | 45.0% |
| Avg LGD secured | 25.0% | 25.0% |
| Funding spread (bp) | 20bp | 15bp |
| Corporate EAD | EUR 12410bn | EUR 4926bn |
Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.
| Component | State Bank of India | HDFC Bank |
|---|---|---|
| Annual revenue | EUR 385,000 | EUR 385,000 |
| Operating cost | EUR 154,000 | EUR 154,000 |
| Expected loss | EUR 28,750 | EUR 28,750 |
| Capital required (FPE) | EUR 2,451,320 | EUR 2,451,320 |
| RAROC (after tax) | 6.87% | 7.31% |
| Min spread for 12% RAROC | 262bp | 252bp |
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