HDFC Bank Ltd. share price target

HDFC Bank (HDFCB) reported steady performance in 2QFY25, with net earnings of NR168.2b (~3% beat)

HDFC Bank reported broadly in-line performance with strong deposit growth in Q2FY2025. Given the transition period, management’s relentless focus is towards balance sheet management and stability in return ratios.

HDFC Bank’s business update for Q2FY2025 indicated that deposit mobilisation (up 15.1% y-o-y/5.1% q-o-q) has been strong (above estimates), led by term deposits(19.3% y-o-y/6.7% q-o-q).

HDFC Bank (HDFCB)’s Annual Report emphasizes the institution's commitment to achieving sustainable growth over the medium term as it continues to invest in strengthening both its physical infrastructure and digital prowess.

HDFC Bank (HDFCB) has reported Q1FY25 PAT at INR 161.7 bn (down 2% QoQ) with annualized RoA of 1.88%. Despite flattish deposits and 1% QoQ decline in loans, NII grew ~3% (1% beat) led by better loan mix (profitable growth).

We maintain our BUY recommendation on the stock

NII growth remained healthy, while fall in other income was offset by lower opex, provision, and adj PAT. NIM increased 3bps QoQ to 3.7%

HDFC Bank disappointed on deposit growth in Q1FY25, after a stellar uptick in Q4FY24 due to run-down in its CA pool as well as a conscious run-down in bulk deposits.