Shares of HDFC Bank decrease by 1.16%, Over 1% was lost by HDFC Bank shares in early trading today, March 11. This follows a fall in ratings and a reduction in the target price by international brokerage CLSA for the shares. HDFC Bank shares were down 1.16% at ₹1,429.60 a share on the BSE at 10:15 a.m. HDFC Bank was lowered by CLSA from “Buy” to “Outperform.” The brokerage company stated that the stock is at a turning point in its trajectory and thus slashed the target price drastically, from ₹2,025 to ₹1,650 per share.
The company stated that while there are long-term benefits to the merger with mortgage lender Housing Development Finance Corporation (HDFC), CLSA cautioned that there are more drawbacks than benefits. It said that HDFC Bank could have to contend with two deposit-related issues: a high ask rate and a challenging climate. It stated that HDFC Bank’s NIM recovery will be more “U-shaped” than “V-shaped” and that “the deposit-gathering requirement increases significantly, and coincidentally, in an environment where the banking sector is facing challenges with deposit growth.” If necessary, we think HDFC Bank would forego growth in order to be careful when it comes to deposit pricing.”
HDFC Bank’s deposit accretion projections for FY2025
HDFC Bank’s deposit accretion projections for FY2025 were lowered by the foreign brokerage firm from ₹5.2 lakh crore to ₹4.2 lakh crore. Additionally, it reduced its projected profits per share (EPS) for FY25 and FY26 by 5% and lowered its loan growth from 15% to 10%.
The share price of HDFC Bank has performed mediocrely during the last three years, declining by more than 7%. The benchmark indexes have not outperformed the stock. The shares of HDFC Bank have dropped more than 16% in 2024 and more than 13% in the last three months. Over 9% of the stock has dropped in a single year. The share price of HDFC Bank has performed mediocrely during the last three years, declining by more than 7%. The benchmark indexes have not outperformed the stock. The shares of HDFC Bank have dropped more than 16% in 2024 and more than 13% in the last three months. Over 9% of the stock has dropped in a single year.
HDFC Bank: The lender has started the process for HDB Financial Services, its subsidiary, to go public through an IPO. According to those with knowledge, the bank intends to hold the financial services division’s share sale in either the first or final quarter of 2025. According to people with knowledge of the situation, HDFC Bank has requested bids and valuation estimates from leading investment banks for the impending initial public offering. An investment banker participating in the negotiations claimed that HDB Financial, a non-deposit-accepting lender, is estimated to be valued between $9 billion and $12 billion (Rs 75,000 crore–Rs 1 lakh crore) for the IPO, depending on market circumstances.
