HDFC Bank Shares Rise Nearly 3% As Q4 Business Updates Show Strong Growth

The shares of HDFC Bank Ltd. gained nearly 3% on Friday as latest updates show its deposits increased by 15.8% to Rs 25.3 lakh crore year-on-year in the fourth quarter.

The private lender's total advances have grown 5.4% year-on-year to Rs 26.4 lakh crore in the January-March quarter of fiscal 2025, the bank said in an exchange filing on Thursday.

HDFC Bank's current account-savings account deposits rose 5.7% to Rs 8.3 lakh crore, the business update showed.

In the last quarter, the lender's gross advances stood at Rs 25.4 lakh crore, and deposits were at Rs 24.5 lakh crore. Retail loans during the quarter were up 9% year-on-year, commercial and rural banking loans were up 12.8%, but corporate loans fell 3.6%.

Macquarie and Morgan Stanley acknowledge solid fundamentals and growth prospects, but they offer slightly differing interpretations of the bank’s deposit performance — a key factor that could influence margin trajectory going forward. While Macquarie has flagged deposit growth as a key concern, Morgan Stanley viewed the deposit growth as more favourable.

The scrip rose as much as 2.62% to Rs 1,841.95 apiece, the highest level since March 25. It pared gains to trade 2.22% higher at Rs 1,834.75 apiece, as of 9:54 a.m. This compares to a 1.11% decline in the NSE Nifty 50 Index.

It has risen 20.11% in the last 12 months and 2.89% year-to-date. Total traded volume so far in the day stood at 1.7 times its 30-day average. The relative strength index was at 65.

Out of 48 analysts tracking the company, 42 maintain a 'buy' rating and six recommend a 'hold,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 9.7%.