
HDFC Bank’s current price stands at ₹1,766.70. HSBC has reiterated its buy recommendation while raising the target price to ₹2,010 from ₹1,870. This adjustment reflects the bank’s strong growth prospects and a higher valuation multiple for both its core banking operations and its NBFC subsidiary, HDB Financial Services.
Reports indicate that HDFC Bank is likely to sell down up to 3% of its loan book to rapidly bring down its loan-to-deposit ratio (LDR). This loan sale is considered important for the quicker normalization of operations following the recent merger with HDFC Ltd.
Additionally, HDFC Bank recently approved the IPO of its subsidiary, HDB Financial Services, a move seen as part of its broader strategy to unlock value. The upcoming IPO is expected to strengthen the bank’s balance sheet and market position, further justifying HSBC’s raised target price.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.