HDFC Bank's 2H Core Operating Performance Likely to Improve -- Market Talk

Dow Jones2025-12-24

0824 GMT - HDFC Bank's core operating performance is likely to improve in 2H, Citi analysts say, leading them to open a 90-day positive catalyst watch on its shares. The Indian lender's growth is likely to outpace system credit growth, given its 3Q on-quarter growth of 3.0%, the analysts say in a note. HDFC Bank is likely to gain market share for deposits, with the deployment of excess liquidity into lending likely to shore up its loan-to-deposit ratio, they say. The bank's net interest margin will likely expand in 3Q, the analysts say, adding that quality metrics across segments such as unsecured retail and emerging corporates are expected to remain stable. Citi raises its target price to INR1,200 from INR1,180 and retains its buy rating on HDFC Bank, which falls 0.2% to INR994.80. (megan.cheah@wsj.com)

 

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December 24, 2025 03:24 ET (08:24 GMT)

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