Macquarie maintains ‘Outperform’ call on HDFC Bank, sees 6.75% upside

Macquarie continues its outperform rating on HDFC Bank, setting a price target of ₹1,900/share, while current prices hover around ₹1,779.85. According to the report, Q2FY25 loan growth for the bank could dip below 10% YoY, impacted by a combination of base effects and reported plans to sell ₹60,000-70,000 crore worth of loan assets.

This quarter is particularly significant as it marks the first post-merger period where year-on-year (YoY) comparisons will be valid. Despite potential challenges in loan growth, net interest margin (NIM) is expected to improve by an additional 5 basis points quarter-on-quarter (QoQ) to 3.52%.

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In comparison, most of HDFC Bank’s peers are expected to report flat or slightly declining margins during this period. This improvement in NIM for HDFC Bank signals resilience in its performance against industry trends.