HDFC Bank Ltd. share price target

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 delivered stable performance in Q1FY25 except on deposit front and maintained its stance of staying focus on delivering stable business matrices in FY25.

We recommend a BUY on the stock with a TP of Rs 1,685/share, implying an upside of 10% from the CMP.

HDFCB: Realigning business dynamics in 4Q to improve profitability

After the Q3 miss, HDFCB largely ticked all the boxes in Q4 – delivering betterthan-expected deposit growth (over Rs1.7trn QoQ), positively surprising on the
margin front (over 3bps QoQ) to 3.63% despite the sharp fall in LDR to 104%
and accelerated branch expansion. HDFCB utilized HDFC Credila’s stake sale
gains of Rs73bn and tax reversal due to favorable court order to shore-up
contingent provision buffer (over Rs109bn QoQ) to 1.1% of loans.