CLSA has maintained its ‘Outperform’ rating on HDFC Bank, raising the target price to ₹2,200 per share after the lender posted a better-than-expected Q4 result. The profit after tax beat estimates by 2%-3%, after adjusting for one-offs.
The brokerage pointed out that although HDFC Bank had underwhelmed in previous quarters, it finally showed improvement with 4% quarter-on-quarter loan growth. The bank reiterated its commitment to at least match industry loan growth in FY26.
CLSA also highlighted that the LDR fell to 96%, down from 104% in the year-ago period, and with a more accommodative RBI now in play, the pressure to cut LDR further is likely to ease. While core NIMs remained stable, the brokerage has revised its macro assumption to factor in a cumulative 75 basis points repo rate cut (up from 50 bps earlier), leading to a modest 2%-3% cut in PAT estimates.
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.
