HDFC Bank, HDFC AMC hit record highs, SBI Cards rallies 5%; here's why?

Thus far in the calendar year 2025, SBI Cards (up 45%), HDFC AMC (up 22%), HDFC Bank (up 12%) have outperformed the BSE Sensex, which was up 4.6% during the same period.

Share price movement of HDFC Bank, HDFC AMC, SBI Card today

 

Shares of private sector giant HDFC Bank (₹1,996.30), HDFC Asset Management Company (AMC) (₹5,140) hit their respective all-time highs, and rallied up to 5 per cent on the BSE in Friday’s intra-day trade amid heavy volumes.  HDFC Bank was up 2.3 per cent at ₹1,996.30, surpassing its previous high of ₹1,977.95 touched on April 23, 2025.

 

Meanwhile, shares of SBI Cards and Payment Services (SBI Card) hit a multi-year high of ₹986.95, also surged 5 per cent on the BSE in intra-day trade. The stock price of the non-banking financial company hit a record high of ₹1,164.65 on September 1, 2021.

 

Thus far in the calendar year 2025, SBI Card (up 45 per cent), HDFC AMC (up 22 per cent), HDFC Bank (up 12 per cent) have outperformed the market by surging over 10 per cent. In comparison, the BSE Sensex was up 4.6 per cent during the same period. 

 

What’s driving a 5% rally in HDFC Bank, HDFC AMC, SBI Card stock price today?

 

Shares of HDFC Bank, HDFC AMC, SBI Card and other rate sensitive sectors, such as financials including banks, non-banking financial companies (NBFCs), housing finance companies; automobiles; and real estate rallied on the bourses in Friday's intraday trade after the outcome of the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting.

 

The RBI MPC, today, front-loaded the repo rate cut as it announced a 50-basis point rate cut, while changing the stance to 'Neutral' from 'Accommodative' given global growth challenges. The RBI MPC, however, announced a 100-bps cut in cash reserve ratio (CRR), spread across four tranches, to infuse liquidity in the system.  ALSO READ | RBI cuts repo, CRR: 5 rate sensitive stocks to buy with up to 26% upside

 

RBI MPC Policy comments

 

The reduction in CRR will be carried out in four equal tranches of 25 bps each with effect from the fortnights beginning September 6, October 4, November 1 and November 29, 2025. The cut in CRR would release primary liquidity of about ₹2.5 trillion to the banking system by December 2025. Besides providing durable liquidity, it will reduce the cost of funding of the banks, thereby helping in monetary policy transmission to the credit market, RBI Governor said in statement.

 

From a banking sector perspective, the pick-up in credit growth which has been subdued as banks exit financial year 2025 (FY25) remains pivotal. Hopes are pinned on a possible recovery in H2FY26 supported by falling interest rates, expectations of a strong monsoon, consumption boost from the tax rate cut and potential recovery in demand for the unsecured segments as stress subsides. 

 

Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS see tailwinds for net interest margins (NIMs) given the improving systemic liquidity and the deposit rate cuts taken by most banks. However, even as H1FY26 will see a more pronounced impact of the rate cut on NIMs, some respite is expected over H2FY26. Asset Quality concern appears to be steadily waning with unsecured segment stress showing gradual signs of stability, while the secured segment asset quality continues to hold up well. At present, the brokerage firm said they would prefer banks with promising growth prospects, healthy deposit franchises, stable asset quality metrics and strong and steady management teams.  

 

InCred Equities view on SBI Card

 

The brokerage firm in the SBI Card report said that their back-of-the-envelope calculations suggest that most big banking entities make ~5 per cent RoA on their credit card business. SBI Card was there in FY22-FY23 with ~30 per cent year-on-year (YoY) growth and credit costs of around seven quarters, during which the stock was trading at ~5.2-8x one-year forward P/BV or ~24-34x one-year forward P/E (Figs. 5 & 6). 

 

Meghna Luthra, analyst at InCred Equities in a note said that the brokerage firm appreciates the rising contribution from SBI for better credit-worthy and retail focus customers, which will lead to better profitability although we remain uncomfortable with the valuation, given the mono-line business. 

 

“We expect the RoA to improve to ~4-5 per cent and RoE to improve to ~17-18 per cent by FY27F-28F led by a gradual rise in market share in spending and reducing credit costs. Our model sensitivity towards credit costs and the rise in asset under management (AUM) shows that ~50bp sensitivity to our estimated credit costs for FY27F is already priced,” analyst said.

 

Geojit Financial Services, Motilal Oswal Financial Services views on HDFC AMC

 

HDFC AMC remains a strong mutual fund industry player due to its robust financials, steady AUM growth, cost efficiency, strong retail presence and multi-channel distribution network, which includes its parent bank's extensive reach, to tap into the vastly under-penetrated market. With a diversified portfolio and digital expansion, it is well-positioned for growth. However, short-term market fluctuations pose a risk, as inflows to equity-oriented schemes are expected to experience volatility, said analysts at Geojit Financial Services in the Q4 result update.

 

According to Motilal Oswal Financial Services, HDFC AMC remains a strong player in the mutual fund industry, backed by robust financial performance, steady AUM growth, cost efficiency and a strong retail presence. While short-term market fluctuations pose challenges, the company’s long-term fundamentals remain solid. With an improved market position, a well-diversified product portfolio, and digital expansion efforts, HDFC AMC is well-positioned to sustain growth and deliver value to its stakeholders

 

Meanwhile, HDFC AMC offers a comprehensive suite of mutual funds, portfolio management services and alternative investment funds across asset classes, including equity, fixed income, hybrid and multi-asset solutions. These offerings are available on both active and passive platforms, catering to a broad and diverse customer base. HDFC AMC acts as an investment manager to HDFC Mutual Fund - one of India’s leading mutual funds. It has reported a closing AUM of over ₹7.5 trillion.

 

Looking ahead, the medium-term outlook for the Indian economy seems optimistic, driven by policy continuity, benefits from production-linked incentive schemes, opportunities arising from shift in the global supply chain and the likely boost to private consumption due to income tax relief and lower borrowing cost, HDFC AMC said in its FY25 annual report.