Morgan Stanley has maintained an ‘Overweight’ rating on HDFC Bank, with a target price of ₹1,975/share, indicating a potential upside of 13% from the current market price (CMP) of ₹1,748.40.
Key highlights include sustained strong deposit growth, with the loan-to-deposit (LD) ratio improving. Deposit growth accelerated to 16% year-on-year (YoY) on both a period-end and average basis, outperforming system growth. Loan growth, net of IBPCs, moderated to +3% YoY from +7% YoY in the previous quarter, reflecting increased sell-down activity.
Margin progression will be a critical factor to monitor in the upcoming quarterly results as the bank navigates these growth dynamics.
Disclaimer: The above analysis is based on inputs provided and is for informational purposes only. It does not constitute financial advice. Readers are advised to consult their financial advisors before making any investment decisions.
