Global Analyst Maintains 'Buy' On HDFC Bank Ahead Of Results

HDFC Bank’s share price continued to make losses for the third straight session on Tuesday as macro factors weighed down the market.

What Happened: Jefferies maintained its “buy” rating for the stock with a price target of ₹1,800. The target implies an around 20% upside from the stock’s last closing price of ₹1,495.75.

The research firm suggested that if the lender achieves a deposit growth rate of 17-18% CAGR over March 2024 and March 2029, the bank can sustain loan growth at around 13%. Jefferies also points out that improvement in the bank’s net interest margins (NIMs) is crucial for a rise in return on assets (ROA) and potential valuation re-rating.

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NIMs are a key metric for banks, representing the difference between the interest income generated from loans and the interest paid on deposits relative to the bank’s interest-earning assets. The private lender is set to report its earnings later this week on Saturday.

Price Action: HDFC Bank’s share price was down 0.70% to trade at ₹1,484.20 as the markets opened on Tuesday.

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Posted In: EquitiesPrice TargetReiterationMarketsAnalyst RatingsMoversTrading IdeasHDFC Bank