Robust growth at HDFC Bk makes brokerages bullish

Mumbai: Brokerages have maintained a bullish stance on HDFC Bank as its pre-quarterly update showed that business growth has been robust in an uncertain macro environment.Analysts said the bank has also shown strong deposit trends. The lender posted around 16 per cent growth in advances and a 20 per cent rise in deposits for the second quarter ended September 30. It further highlighted that the CASA ratio came at 42 per cent at the end of the second quarter against 30.30 per cent a year ago. Shares of HDFC Bank ended up 2.6 per cent at Rs 1,143 on Tuesday.“We expect the strong corporate loan growth momentum to have continued in this quarter as well. Furthermore, the bank has indicated that most of the business segments are already at 80–90 per cent of pre-Covid Jan’20 levels; card spends are also at 90–95 per cent of pre-Covid levels,” said brokerage Motilal Oswal, which has maintained a buy rating on the lender with a target price of Rs 1,280.Emkay Global has maintained a buy rating on HDFC Bank with a target price of Rs 1,300 while Macquarie has maintained an outperform rating with a Rs 1,219 target price. Morgan Stanley has maintained overweight with a target price of Rs 1,450.“The initial update appears quite strong on growth against the backdrop of a gradual pickup in macro following the Covid-19 outbreak: The bank continues to gain market share, both in loans and deposits,” said Morgan Stanley.

from Economic Times https://ift.tt/3dhgG1r