Jefferies has reaffirmed its Buy rating on HDFC Bank with a target price of ₹2,340, indicating a potential upside of 17.4% from the current market price of ₹1,992.70. The brokerage highlighted steady improvement in loan growth and a healthier loan-to-deposit ratio (LDR) as key positives heading into the bank’s Q1FY26 results.
According to Jefferies, HDFC Bank’s loan growth improved to 6.7% year-on-year in Q1FY26, compared to 5.4% in Q4FY25 and 3% in Q3FY25, suggesting that the bank is gradually moving towards the sector average and remains on track to meet its March 2026 growth targets. On a sequential basis, loan growth stood at 0.4%.
Deposit growth remained robust at 16% YoY and 1.8% QoQ, while the LDR moderated to 96% from 105% a year ago—signaling improved balance sheet efficiency. Jefferies expects both loan growth and LDR to improve further over the next two years.
The brokerage added that more detailed insights into segment-wise performance will emerge when HDFC Bank releases its full quarterly results on July 19.
Disclaimer: The views expressed above are those of Jefferies and do not constitute investment advice. This article is for informational purposes only.
