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UBS Adds HDFC Bank to APAC Key Call List, Bullish on Stock with 36.8% Upside
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CNBC TV18•21-09-2026, 08:16
UBS Adds HDFC Bank to APAC Key Call List, Bullish on Stock with 36.8% Upside
- •UBS retained its ‘Buy’ recommendation on HDFC Bank, setting a price target of ₹1,000, implying a 36.8% upside from its Friday closing price.
- •The brokerage expects resolution of leadership uncertainty to act as a catalyst for stock re-rating, as potential downsides are already reflected in valuation.
- •UBS believes the market underappreciates HDFC Bank's extensive branch expansion, with 42% of branches less than five years old, expected to drive stronger deposit growth.
- •Early signs of loan growth recovery (15.6% in Q1 FY27) and healthy deposit growth are noted, with loan growth projected to improve to 15% for FY27-FY29.
- •UBS anticipates HDFC Bank's Net Interest Margin (NIM) to improve to 3.5% and Return on Assets (RoA) to 1.9% by FY27-FY28, making its risk-reward profile favorable.
Key Questions Answered
UBS has set a price target of ₹1,000 for HDFC Bank, which represents a potential upside of 36.8% from the stock's closing price of ₹731.20 on Friday.
UBS notes that approximately 42% of HDFC Bank's branches are less than five years old, and as these newer branches mature, their productivity will improve to support stronger deposit mobilization and business growth.
Out of the 49 analysts tracking HDFC Bank, 47 have given the stock a 'Buy' rating, while only two maintain a 'Hold' rating.
