HDFC Bank Q3: Should You Buy HDFC Bank Shares Post Q3

Large cap private sector bank HDFC Bank shares today rallied 1.42% on Bombay Stock Exchange (BSE) to settle at Rs 1665.05 per share. India’s largest lender, HDFC Bank today announced a surge of 2.2% in its net profit for the Q3 FY25 to Rs 16,735.50 crore as result of sluggish growth in core income and increased slippages from agricultural loans, according to its BSE filing.

The bank reported its net interest income or NII soared 7.7% year-on-year (YoY) to Rs 30,650 crore as the other income remained nearly flat at Rs 11,450 crore. The bank informed that the mark-to-mark gain on investments slipped to Rs 70 crore for Q3 FY25 as against Rs 1470 crore announced in Q3 FY 2024.

Meanwhile, provisions and contingencies witnessed dip to Rs 3,150 crore in Q3FY25 as against Rs 4220 crore declared in Q3 FY24. It is worth mentioning here that the bank’s asset quality worsened with gross non-performing assts or NPA rising to Rs 36,019 crore as against Rs 34,251 crore in the earlier quarter and Rs 30,012 crore reported in Q3 FY24. Its gross NPS ration stood at 1.42% for the quarter ended December 2024 as against 1.36% for the September quarter and 1.26% an year ago.

Chief Financial Officer Srinivasan Vaidyanathan said after the results, “We are quite happy to be lower than industry levels in terms of credit growth…our focus right now is to reposition the balance sheet.”

“The retail-wholesale mix is about 58:42 right now. The biasness is towards retail because that is where investments have gone. Wholesale is important. It is extremely price-sensitive. The spreads are very tight,” Vaidyanathan added.

Total deposits recorded a surge of 16% YoY to Rs 25.6 lakh crore. On the other hand, current account and savings account deposits accounted for 34% of total deposits for the quarter ended December 2024.

HDFC declared its gross advances rallied 3% YoY to Rs 25.4 lakh crore while retail loans surged 10% YoY. Commercial and rural bank zoomed approximately 12%. Corporate and other wholesale loans recorded decline by more than 10% and overseas advances managed to contribute approximately 2% to entire advances.

HDFC Shares Performance

The 52-week high price of HDFC Bank Ltd share stood at Rs 1880.00 per share (as on 09/12/2024) and 52-week low price is Rs 1363.45 per share (as on 14/02/2024), respectively. The bank has a market capitalisation of Rs 12,73,482.78 crore, according to BSE. Its return on equity (ROE) is 14.31%. HDFC Bank shares gave return of 1.36% in last 1-week, slipped 6.04% in last 1-month, and surged over 12% in last 1-year. The bank offered return of 34.24% in last 5-years.

HDFC Bank Dividend History

It announced 25 dividends since April 20, 2001. In last 1-year, HDFC Bank recommended an equity dividend amounting to Rs 19.50 per share. At the current share price of Rs 1665.05, HDFC Bank offers a dividend yield of 1.17%, according to Trendlyne.

HDFC Bank Stock Split History

HDFC Bank split face value of its stock twice since July 14, 2011. It last sub-divided the face value of its shares from Rs 2 to Re 1 in 2019. The share traded ex-split as on September 19, 2019.

Brokerages Recommend Buy Call

Leading brokerage firm Axis Direct has recommended a target price of Rs 1780 per share with stop loss at Rs 1620 per share. The analyst has suggested the entry price between the range of Rs 1644 to Rs 1660. The analyst has assigned a target time of 0 to 15 days.

Meanwhile, Vikas Jain from Reliance Securities suggested buying HDFC Bank shares with target price of Rs 1750 with a stop-loss at Rs 1600.

Disclaimer

The stock has been picked from the brokerage report of Axis Direct and Reliance Securities. Money Daily, the Author, and the respective Brokerage House will no be held accountable for any losses caused as a result of decisions based on the article. MoneyDaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.