UBS has reiterated its bullish stance on HDFC Bank, maintaining a ‘Buy’ rating and setting a target price of ₹2,250 per share. The global brokerage cited a slight beat in profit after tax (PAT) and pre-provision operating profit (PPOP) for the fourth quarter, along with a positive surprise in net interest margin (NIM) expansion.
UBS noted that deposit traction was healthy, although modest loan growth led to a decline in the loan-to-deposit ratio (LDR) to 96.5%. The brokerage expressed increased confidence in the bank’s growth trajectory, especially with an improving system liquidity backdrop.
Given the operational performance and macro tailwinds, UBS has marginally increased its earnings per share (EPS) estimates for FY26 and FY27 and expects HDFC Bank to deliver around 14% return on equity (RoE) over that period.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
