HDFC Bank Q2 Results - IDBI Capital Maintains 'Buy' Rating On The Stock, Revises Target Price; Here's Why

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.HDFC Bank Ltd. reported slower credit growth at 1% QoQ (7% YoY) while strong deposit growth stood at 5% QoQ (15% YoY) led by focus on lowering of CD ratio, in line with the guidance. Management guided for improvement in credit growth similar to industry average during FY26 and higher than industry during FY27. NIMs remained stable at 3.5% as cost of funds remain stable; however, we need to watch out for impact of rate cut on NIMs as 69% loan book is linked to EBLR. Asset quality remains stable as GNPA stood at 1.36% versus 1.33% QoQ led by higher write offs. Net interest income grew by 1% QoQ while pre-provision operating profit grew by 3% QoQ due to higher other income (up 8% QOQ). PAT grew by 4% QoQ led by lower tax rate. We largely maintain FY25E/FY26E estimates as margin improvement needs to be seen. We maintain Buy rating with the target price of Rs 1,970 (earlier Rs 1,872) valuing parent business at Rs 1,765 at 2.3 times price/adjusted book value FY26 (earlier at 2.2 times)..Click on the attachment to read the full report:.HDFC Bank Q2 Results Review - LDR Aspects Still Portend A Long Walk To Freedom: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Bank Q2 Results - IDBI Capital Maintains 'Buy' Rating On The Stock, Revises Target Price; Here's Why

The brokerage remains structurally positive on the bank given its superior credit underwriting, and the ability to maintain stable RoA post-merger.

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HDFC Bank Q2 Results - IDBI Capital Maintains 'Buy' Rating On The Stock, Revises Target Price; Here's Why

The brokerage remains structurally positive on the bank given its superior credit underwriting, and the ability to maintain stable RoA post-merger.

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