HDFC Bank Ltd. share price target

HDFCB delivered a healthy quarter, with NIMs improving 4bp QoQ and the
CD ratio declining 6% QoQ to 104%. PAT (adj. for one-offs) and NII both
stood in line with our estimates.

Apart from strong deposits growth and subdued loan growth, which were already communicated, key highlights from HDFC Bank’s (HDFCB) Q4FY24 results include: 1) sharp reduction in borrowing (down 10% QoQ); 2) 3–4bps QoQ rise in NIM

HDFC Bank reported broadly in-line performance in Q4FY24. Numbers on a y-o-y numbers are not
comparable as this is the third quarter reported after the merger. NII at Rs. 29,077 crore (up 2% q-o-q) was in line with expectations driven by stable NIM of 3.4% (marginally improved by 4 bps q-o-q) and net loan growth of 1.6% q-o-q.

Building Materials: Strong foundations HDFCB: Margin pressure dampens performance

Recommendation: We maintain our BUY recommendation on the stock.