HDFC Bank Share Price Rises For 7th Consecutive Session; Brokerages Upbeat On Q4 Update

HDFC Bank Share Price Surges Amid Positive Q4 Business Updates

The HDFC Bank share price continued its upward trajectory on Friday, April 5, following the private lender’s robust March quarter business updates. The bank’s impressive growth in deposits and a decline in the loan-to-deposit ratio have attracted significant buying interest, propelling the stock for the seventh consecutive session. Here’s a comprehensive overview of HDFC Bank’s recent performance and market outlook:

Positive Sentiment Post-Q4 Business Updates

HDFC Bank’s March quarter business updates have garnered positive reactions from several top brokerage firms, who have expressed optimistic views on the stock. Notable highlights include:

Macquarie maintains an ‘outperform’ view with a target price of ₹2,000, citing the bank’s consolidation strategy yielding favorable outcomes.
HSBC maintains a buy call with a target price of ₹1,750, highlighting above-estimate deposit growth and an anticipated slowdown in loan growth.
Morgan Stanley maintains an overweight view with a target price of ₹1,900, underscoring the bank’s promising performance.

Key Highlights of HDFC Bank’s Q4 Business Update

In its exchange filing on April 4, HDFC Bank reported significant growth across various segments:

Gross advances in Q4FY24 increased by 55.4% YoY and 1.6% QoQ, totaling nearly ₹25,08,000 crore.
Domestic retail loans grew by approximately 108.9% YoY and 3.7% QoQ.
Deposits reached ₹23,80,000 crore as of March 31, 2024, registering a YoY growth of around 26.4% and QoQ growth of 7.5%.
CASA deposits aggregated to approximately ₹9,09,000 crore, up about 8.7% YoY and 8.8% QoQ, with the CASA ratio standing at around 38.2%.
HDFC Bank divested about a 3% stake in Indraprastha Medical Corporation, reinforcing its strategic realignment efforts.

Foreign Institutional Investors (FII) Ownership Decline

The latest shareholding data for HDFC Bank reveals a decline in FII ownership during the March 2024 quarter, down to 47.83% from 52.39% in the previous quarter. This decline has spurred expectations of balancing measures and fresh investments from new foreign investors to maintain MSCI index weightage.

Promising Outlook for HDFC Bank

HDFC Bank’s robust performance in the March quarter, coupled with positive market sentiment and analyst endorsements, bodes well for its future trajectory. Investors are advised to monitor further developments, including the upcoming financial results announcement on April 20, for potential market opportunities.

As HDFC Bank continues to reinforce its position as a leading player in the financial sector, stakeholders can expect continued momentum and value creation in the foreseeable future.