Nomura Adjusts HDFC Bank's Price Target to 940 Indian Rupees

HDFC Bank shares fell 1.7% after reporting a 4.7% YoY net profit increase but a record-low net interest margin of 3.1%. Net interest income rose 10% to ₹34,649 crore, while non-interest income declined 3.6% YoY. The bank's YTD returns are -26%. Deputy Managing Director Kaizad Bharucha's planned exit may also impact sentiment.

HDFC Bank reported Q2 earnings with a 4.7% YoY net profit increase and 9.7% NII growth, meeting market expectations. Brokerages like Bernstein, JPMorgan, and Citi maintained bullish ratings but cut target prices, citing margin pressure and loan growth concerns. Bernstein sees 58% upside, while others project 18-33% upside.

Axis Bank reported a 37.6% Y/Y rise in Q2 net profit to INR 70.03bln, missing estimates. HDFC Bank's Q2 net profit rose 4.7% Y/Y to INR 195.10bln, also missing estimates. ICICI Bank's Q2 net profit rose 20.1% Y/Y to INR 148.43bln, beating expectations. Yes Bank's Q2 net profit rose 65% Y/Y to INR 10.80bln, but a court ruling could reverse this. India plans to cut prices of 137 cancer drugs by 70% and cap trade margins at 30%.

HDFC Bank (HDFCBANK) reported Q2 profit rise with higher net interest income, growing deposits, and improved asset quality. Treasury income fell, and FCNR(B) inflows pressured margins. Anup Bagchi will succeed Sashidhar Jagdishan as CEO. Analysts note margin pressure and stable asset quality. Basel III CAR was 18.9%, revenue Rs48,450cr, and cost-to-income 39.1%.

HDFC Bank (HDB) reported Q2 FY '27 earnings, with retail disbursements rising to INR 90,000 crores. Retail loan growth was 11.2% YoY, and new credit card issuances grew 19% QoQ. MSME loan growth was 23.5% YoY. The bank's asset quality remained strong, with GNPA at 1.11%. Profit after tax grew 12.7% YoQ to INR 195 billion. The bank is investing in AI and digital technologies to enhance customer experience and safety.

HDFC Bank reported a 5% YoY net profit rise to ₹19,510 crore for Q2, missing estimates of ₹19,606 crore. Lower treasury gains impacted earnings, though loan and deposit growth was strong. Net interest income rose 9.7% to ₹34,619 crore, while net interest margin fell to 3.16%. Asset quality improved, with gross NPA ratio declining to 1.11%. Leadership transition is underway with Anup Bagchi set to become MD and CEO.