HDFC Bank shares hit record high post Q4; time to add to your portfolio?

HDFC Bank share price rose 2.2 per cent on the BSE in the intraday trade and hit a fresh record high of ₹1,950 per share. Analysts see up to 15 per cent upside from current market price

HDFC Bank share price hit a fresh record high on Monday, April 21, 2025, as India’s biggest private sector bank posted margin expansion and an improvement in asset quality in March 2025 quarter (Q4FY25) results.

 

The bank, according to analysts, reported better credit growth in Q4FY25, as well as stable core margins, after growth calibration for the past one year, and amid pressure to bring down loan-deposit ratio (LDR) and manage priority sector lending (PSL).

 

HDFC Bank shares today rose 2.2 per cent on the BSE in the intraday trade and hit a fresh record high of ₹1,950 per share. At 10:00 AM, HDFC Bank shares were trading 1.2 per cent higher at ₹1,930 per share on the BSE as against a 0.8 per cent rise in the BSE Sensex index. The market capitalisation of HDFC Bank stood at ₹14.78 trillion at the time of writing this report.  Follow Stock Market LIVE Updates today here

 

HDFC Bank: Share price target, ratings

 

Emkay Global on HDFC Bank | Buy

Emkay Global has increased HDFC Bank share price target to ₹2,200 per share (from ₹2,100 per share) as the bank’s management said it hopes to maintain margins around current levels in financial year 2025-26 (FY26), driven by improving portfolio mix toward retail/SME, lower share of borrowings, and substitution of high-cost e-HDFCL borrowings with deposits.

 

“This, coupled with continued lower loan-loss provisions (LLP) and opex management, is likely to help the bank deliver 1.8-1.9 per cent return on asset (RoA) over FY26-28E. Further, the listing of HDB Fin (RBI deadline: Sep-25), and hence value un-locking, should be a positive catalyst for HDFC Bank stock,” it said.

 

Motilal Oswal Financial Services on HDFC Bank | Buy

The brokerage has raised its earnings estimates for HDFC Bank by 3 per cent for FY26 and 5 per cent for FY27, and estimates HDFC Bank to deliver an FY27E RoA/RoE of 1.9 per cent/14.6 per cent.

 

It also factors-in loan growth of 10 per cent for the current financial year and 13 per cent for FY27. The gradual retirement of high-cost borrowings, along with an improvement in operating leverage, the brokerage said, will support return ratios over the coming years.

 

MOFSL, too, has raised HDFC Bank share price target to ₹2,200 per share.  READ | Nifty Bank up 2%, hits record high on strong Q4 results by HDFC, ICICI Bank

 

Nuvama Institutional Equities on HDFC Bank | Buy

Nuvama analysts, too, have raised HDFC Bank share price target to ₹2,195 per share (from ₹1,950) as they believe positive outcomes on asset quality, a substantial gain in deposit market share, consistent improvement in loan-deposit ratio (LDR) and an uptick in core net interest margin (NIM) made Q4FY25 a strong quarter for the bank.

 

“We build-in a 16bp decline in NIM for FY26. On the negative side, both EBLR and MCLR loans would get repriced lower through FY26E. On the positive side, incremental deposits, e-HDFC’s borrowings and part of outstanding deposits shall also get repriced. CASA improvement is the key monitorable as it could shield NIM partly,” the brokerage said.

 

HDFC Bank Q4 results review:

HDFC Bank reported, largely, in-line results in Q4FY25. HDFC Bank’s net profit increased 7 per cent year-on-year to ₹17,620 crore in Q4, with net interest income (NII) up 10.3 per cent Y-o-Y to ₹32,060 crore and core NIM expanding 3 basis points Q-o-Q to 3.46 per cent.

 

HDFC Bank’s provisions declined 76 per cent Y-o-Y to ₹3,190 crore as asset quality improved. The gross non-performing asset (GNPA) ratio improved by 9bps Q-o-Q to 1.33 per cent in Q4FY25, while NNPA improved 3bps Q-o-Q to 0.43 per cent. HDFC Bank’s fresh slippages were lower in Q4, at ₹7,500 crore vs ₹8,800 crore in Q3FY25.

 

Loans grew 5.4 per cent Y-o-Y/4 per cent Q-o-Q to ₹26.2 trillion while Deposits grew 14 per cent Y-o-Y/6 per cent Q-o-Q to ₹27.1 trillion. LDR eased 173bps Q-o-Q to 96.5 per cent.

 

About HDFC Bank

HDFC Bank is India’s largest private sector bank with a balance sheet size of over ₹39.1 trillion at the end of Q4FY25. HDFC Bank is among the top three players in auto loans, personal loans, commercial vehicles, cash management, and supply chain management.