UBS has maintained its ‘Buy’ rating on HDFC Bank, while raising the target price from ₹1,900 to ₹2,100. The brokerage expects loan book rebalancing to drive return on assets (ROA) acceleration for the bank. Over the next two years, an easy rate environment is anticipated to support faster repricing of liabilities, helping the bank’s performance.
However, UBS noted that softer near-term loan growth may limit net interest income (NII) acceleration. Despite this, key catalysts like the bank’s retail deposits and net interest margin (NIM) progression are expected to provide positive momentum. UBS remains optimistic about HDFC Bank’s ability to sustain long-term growth and profitability.
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