Goldman Sachs has reiterated its ‘Buy’ call on HDFC Bank, with a target price of ₹2,087, implying a 16% upside from the current market price of ₹1,805.20 (as of April 11, 2025).
The brokerage highlighted the bank’s recent move to cut interest rates on savings deposits by 25 basis points to 2.75% for balances below ₹5 million — its first such reduction since June 2020. GS views this as a notable signal of confidence in deposit accretion, especially in light of muted growth in system-wide savings deposits.
The rate cut comes amid the Reserve Bank of India’s shift to an accommodative policy stance, which is expected to inject more liquidity into the banking system. Goldman Sachs believes the move is a prudent step to ease margin pressures in a potential rate-cutting environment and underlines HDFC Bank’s strategic focus on cost-efficient funding.
Additionally, the bank’s incremental market share gains in total deposits reflect growing customer trust and strong positioning in the highly competitive deposit landscape.
Disclaimer: The above views are of the brokerage and not of the author or the publication. Please make any and every investment decision after consulting your financial advisor.
