On April 5, HDFC Bank’s share price remained in focus, continuing its upward trajectory following the private lender’s impressive March quarter business updates, which showcased significant growth in deposits and a reduction in the loan-to-deposit ratio. Marking its seventh consecutive session of gains, HDFC Bank’s share price opened at ₹1,543, reflecting a one percent increase from its previous close of ₹1,527.90 on the BSE.
Several prominent brokerage firms expressed bullish sentiments towards HDFC Bank’s stock post its Q4 business update, citing better-than-expected deposit growth during the March quarter.
Macquarie maintained an “outperform” rating on the stock with a target price of ₹2,000, emphasizing that the bank’s Q4 updates indicate a successful consolidation strategy. HSBC reiterated a buy call with a target price of ₹1,750, noting that HDFC Bank’s Q4 deposit performance surpassed street estimates. Meanwhile, Morgan Stanley maintained an overweight view on the stock with a target price of ₹1,900.
In its exchange filing on April 4, HDFC Bank reported a 55.4 percent year-on-year increase in gross advances for Q4FY24, amounting to nearly ₹25,08,000 crore. The bank’s domestic retail loans witnessed a robust growth of around 108.9 percent year-on-year, while its commercial and rural banking loans expanded by approximately 24.6 percent year-on-year. Furthermore, the deposits figure stood at ₹23,80,000 crore as of March 31, 2024, registering a growth of around 26.4 percent year-on-year.
Additionally, HDFC Bank disclosed a stake sale of about 3 percent in Indraprastha Medical Corporation through the secondary market route on NSE, amounting to a cash consideration of ₹55.46 crore.
Furthermore, FII ownership in HDFC Bank witnessed a decline during the March 2024 quarter, dropping to 47.83 percent from 52.39 percent in the December 2023 quarter. This decline has spurred expectations of potential balancing and fresh investment from new foreign investors to compensate for the reduced FII stakes.
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