Bernstein has reiterated its outperform rating on HDFC Bank, retaining a target price of ₹1,200 per share, as it highlighted the bank’s ability to deliver steady and predictable earnings growth.
The brokerage described HDFC Bank as continuing to rebuild its reputation for what it termed “boring but highly consistent” performance, noting that Q3FY26 marked another solid quarter of execution. Earnings per share growth improved to 11% year-on-year, up from 10% in the previous quarter.
Bernstein attributed the improvement in EPS growth to stable net interest income expansion, aided by a marginal uptick in the loan-to-deposit ratio. The release of contingent provision buffers helped offset one-off operating expenses, while tight cost discipline and healthy non-interest income growth further supported profitability.
Importantly, Bernstein noted that return on assets remained stable, reinforcing confidence in the bank’s underlying business quality and balance sheet strength. The brokerage sees this consistency as a critical differentiator at a time when investors are increasingly rewarding predictability over aggressive growth.
Overall, Bernstein believes HDFC Bank’s steady earnings trajectory and disciplined operating model continue to justify its outperform stance.
Disclaimer: The views and recommendations above are those of Bernstein. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
