Brokerages endorse HDFC Bank post Q3 data

Domestic as well as global brokerages maintained their bullish view on HDFC Bank after it posted 20 per cent growth in net profit for the third quarter ended December.

The profit figure stood at Rs 5,586 crore, which came mainly on the back of higher net interest income.

The private lender had posted a net profit of Rs 4,642.6 crore in the same quarter last year.


CLSA maintained ‘Buy’ on HDFC Bank with a target price of Rs 2,730. The brokerage added that Q3 results were a tad disappointed due to slower CASA growth of 13 per cent year-on-year. It added that asset quality of the lender slipped, but stressed that loan ratio is still among the lowest. CLSA sees 21 per cent profit CAGR over FY18-21.

The scrip was 1.09 per cent up at Rs 2,154 at around 10.40 am while the BSE Sensex surged 283 points, or 0.78 per cent, to 36,669.

JPMorgan has an ‘Overweight’ call on HDFC Bank with a price target of Rs 2,400. December quarter earnings stood in line with expectations and loan growth of 24 per cent remained solid, the brokerage house said.

During the quarter, gross non-performing assets (GNPAs) advanced to 1.38 per cent of total advances as against 1.29 per cent a year before. Net NPAs declined to 0.42 per cent of the assets in October-December 2018, against 0.44 per cent earlier.

Edelweiss also maintained ‘Buy’ on HDFC Bank with a revised target price of Rs 2,530 from Rs 2,454. It also said core operating performance of the lender remained strong, but asset quality slipped a bit.

Emkay retained ‘Buy’ with an upward target price of Rs 2,600 against Rs 2,500 earlier.