HDFC Bank Ltd. share price target

We maintain our BUY recommendation on the stock.

HDFC Bank reported a steady Q3 FY26 performance, with NII growing ~6% YoY. NIM stood at 3.35%, flat sequentially but down ~8 bps YoY. Non-interest income rose ~16% YoY, though declined ~8% QoQ, resulting in operating income growth of ~9% YoY. Operating expenses increased ~10% YoY, led by higher staff costs, keeping the cost-to-income ratio broadly stable at ~41%. Lower provisions supported profitability, with PAT rising ~11% YoY and remaining flat sequentially. Balance sheet growth remained healthy, with advances up ~12% YoY, while deposits grew ~12% YoY, indicating improving business momentum....

About the stock: HDFC Bank is a leading private sector bank with consistent growth and operational performance over various cycles. Post merger, the bank has become the second largest in terms of size with diversified portfolio. Largest private sector bank with loan book of ~ 28.5 lakh crore Q3FY26 performance: HDFC Bank reported steady Q3FY26 performance, with advances up 11.9% YoY (2.7% QoQ) to 28.5 lakh crore, driven by MSME and corporate segments, while deposits grew 11.6% YoY (2.1% QoQ) to 28.6 lakh crore, led by term deposits (+12.3% YoY). NII rose 6.4% YoY to 32,615 crore, while NIMs...

Growth in loans was seen across segments and is expected to continue in the *over or under performance to benchmark index second half of the year due to the festival season and rising credit demand in the small and medium enterprises (SME) segment. It expects to hold on to its market share gain in deposits. Savings rate repricing has led to a decrease in the cost of funds in the quarter. HDFC Bank expects time deposit repricing to become beneficial after six quarters. It is focusing on creating an operational leverage in the long term through investments in distribution and technology. The bank expects...

HDFC Bank’s Q2FY26 performance underscores steady earnings delivery and resilient balance sheet strength. Core profitability remains stable, supported by improving asset quality and healthy capital buffers.

For Q1FY26, Net interest income (NII) grew by 5.4% YoY (-2.0% QoQ) to INR 314.4 Bn., above our estimates by 4.8%, primarily driven by lower interest expenses on account of decline in cost of funds, reflecting efficient liability management.

HDFC Bank’s (HDFCB) annual report highlights the bank’s focus on sustainable growth over the medium term as it continues to invest in strengthening its physical infrastructure and digital capabilities.

HDFC Bank reported improvement in credit growth to 7% YoY (5% YoY Q4 FY25) while deposit growth stood at 16% YoY (2% QoQ) led by focus on lowering of CD ratio; at 95.1% vs 96.5% QoQ. Management maintained guidance for improvement in credit growth similar to industry average during FY26 and higher than industry during FY27. NIMs declined to 3.35% vs 3.46% led by rate cut impact; however, we need to watch out for further impact of rate cut on NIMs as ~70% loan book is linked to EBLR. Asset quality slightly deteriorated as GNPA stood at 1.4% vs 1.33% QoQ due to seasonality. NII grew by 5% YoY led by...

We maintain our BUY recommendation on the stock.

HDFCB saw stable quarter as core PAT was largely in-line at Rs147bn after adjusting for one-time effects viz. (1) stake sale gains of Rs91.3bn on HDB listing (2) buffer provisions of Rs107bn and (2) lower tax rate at 14.7% pursuant to favorable IT order of Rs11.44bn. Buffer provisions stood at 82bps vs 96bps for ICICIB. As LDR has declined to 95% from 103.5% a year ago, focus is back on shoring up loan growth/CASA. Targeted medium term LDR is 87-90%. Bank is confident of achieving guided loan growth given strong domestic demand...

HDFC Bank (HDFCB) reported steady Q1FY26 results with PAT of INR 182bn, up 12% YoY, driven by 5% YoY rise in NII. It has utilised one-off gains from HDB stake sale (INR 91bn) and tax credit (INR 11bn) towards floating provisions (INR 90bn) and contingent provisions (INR 17bn).

HDFC Bank is gradually stepping up credit growth, although margin slipped by 23bps QoQ from a higher base in 4Q due to swift rate cuts and lower interest on IT refund.

HDFC Bank (HDFCB) reported a 1QFY26 profit of INR181.6b (12% YoY growth, 4% beat), aided by tax reversals (tax rate of 15%).

CD ratio continued to moderate with slowdown in credit growth, while deposit growth higher than system growth

HDFCB saw soft quarter as core PAT was 3.0% lower to PLe due to lower fees and NII. Adjusted for tax refund, NIM at 3.53% was 4bps lower to PLe. However, asset quality was better as GNPA declined by ~8bps QoQ to 1.33% owing to lower net slippages. LDR declined over FY24 to FY25 from 104.5% to 96.5% but further reduction may happen at a slower pace in FY26 as credit growth would pick-up. Bank has guided to reach LDR of 85-90% in FY27; we are factoring LDR to reach 92.5%/89.0% in FY26/27E which would imply a loan CAGR of 10%. Due...

We maintain our BUY recommendation on the stock.

After growth calibration for the past one year, and under pressure to bring down LDR and manage PSL/margins, HDFC Bank reported better credit growth in 4Q at 5% YoY/4% QoQ as well as stable core margins.

HDFC Bank (HDFCB) reported Q4FY25 PAT of INR 176bn (RoA steady at ~1.9%) led by stable core NIM QoQ and contained opex. Deposits growth (14% YoY) remains driven by term deposits (20% YoY) while CA grew 18% QoQ (up 1% YoY) due to seasonality.