Bernstein has maintained its outperform rating on HDFC Bank with a target price of ₹1,150 per share, highlighting strong loan growth momentum despite weakness in deposit accretion during the second quarter. The brokerage observed that loan growth remained robust in an otherwise growth-starved banking environment, which it considers a positive indicator of demand resilience.
According to Bernstein, while deposit growth lagged behind loan expansion, this imbalance could actually support margins in the short term. The report stated that HDFC Bank’s improved loan growth profile, coupled with its consistent execution across retail and corporate segments, underscores its core strength.
The brokerage believes that as deposit mobilisation catches up, the bank’s funding mix will normalise, supporting sustainable growth. In the meantime, near-term margin tailwinds from weaker deposit growth could offer earnings stability. Bernstein reaffirmed that HDFC Bank remains one of its preferred picks in the private banking space, given its proven operating metrics and strong asset quality.
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.
