HDFC Bank Q3 Results Review: IDBI Capital Maintains 'Buy' On The Stock, Sees 18% Upside — Here's Why

Post merger, focus has been to reduce the creit-deposit ratio to pre-merger average which resulted in credit slowdown to the lowest in history..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 (3% YoY) while deposit growth stood at 3% QoQ (16% YoY) led by focus on lowering of CD ratio; at 99.8% versus 103.5% QoQ. Management maintained guidance for improvement in credit growth similar to industry average during FY26 and higher than industry during FY27. Net interest margins declined slightly to 3.43% as cost of funds remain stable; however, we need to watch out for impact of rate cut on NIMs as ~70% loan book is linked to EBLR. Asset quality slightly deteriorated as gross non-performing asset stood at 1.42% versus 1.36% QoQ led by higher slippages. Net interest income grew by 8% YoY led by stable NIMs while pre-provision operating profit grew by 6% YoY due to lower other income (up 3% YoY). PAT grew by 2% YoY led by higher tax rate. We have revised estimates lower by 2% book value for FY26E and rolled over to FY27E estimates. We maintain Buy rating with the target price of Rs 1,970 valuing parent business at Rs 1,795 at 2.1x P/ABV FY27E..Click on the attachment to read the full report:.HDFC Bank Q3 Review— Inline; Asset Quality Blips Amid Seasonality; Motilal Oswal Retains 'Buy' On The Stock.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 Q3 Results Review: IDBI Capital Maintains 'Buy' On The Stock, Sees 18% Upside — Here's Why

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

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HDFC Bank Q3 Results Review: IDBI Capital Maintains 'Buy' On The Stock, Sees 18% Upside — Here's Why

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

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