Prabhudas Lilladher issued a buy rating for HDFC Bank with a target price of Rs 950. The bank saw a steady quarter as core PPoP met estimates. While reported NIM fell by 8bps QoQ to 3.32%, the bank said, "NIM has bottomed out and may improve from the next quarter."
Prabhudas Lilladher's research report on HDFC Bank HDFCB saw a steady quarter as core PPoP was largely in-line. While NII met estimates, higher fees were offset by more provisions (ageing related). Adjusted for FCNR, loan growth at 3.4% QoQ was lower than ICICIB/AXSB. While reported NIM fell by 8bps QoQ to 3.32%, as per our calculations, adjusted for the FCNR impact NIM was flat to positive. As per the bank, NIM has bottomed out and may improve from the next quarter, driven by shift in credit flow towards retail/SME from corporate/home loans and impact of rate hike in Oct'26. Mr. Anup Bagchi's strategy for the bank would be a key monitorable. Outlook We keep multiple at 1.9x on Sep'26 core ABV and keep TP at INR 950. Retain 'BUY'. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. HDFC Bank - 1910026 - prabhu