Stories
HDFC Bank Share Price Slumps After Q2 Results, Brokerages Maintain Bullish Stance
- •HDFC Bank shares dropped 2 percent to Rs 714 in early trade on Monday following its Q2 earnings.
- •The stock became one of the top losers on Nifty due to concerns over net interest margin pressure and modest earnings growth.
- •Standalone net profit for the September quarter rose 4.7 percent year-on-year to Rs 19,510 crore, matching market estimates.
- •Despite near-term pressures, major brokerages including JP Morgan, Citi, Bernstein and Jefferies have maintained their bullish ratings on the stock.
Key Questions Answered
HDFC Bank reported a 4.7 percent year-on-year increase in its standalone net profit to Rs 19,510 crore for the second quarter of FY27. Additionally, its net interest income (NII) rose by 9.7 percent to reach Rs 34,619 crore.
Despite pressures on net interest margins and lower asset returns, several major brokerages maintained their 'bullish' or 'buy' ratings on HDFC Bank. While firms like JPMorgan and City lowered their respective target prices to Rs 970 and Rs 880, others like Bernstein and Jefferies retained positive ratings and higher target prices, highlighting solid asset quality and stable operational performance.
HDFC Bank's asset quality showed sequential and yearly improvement, with the gross non-performing asset (GNPA) ratio improving to 1.11 percent for the quarter ending September 30, 2026, down from 1.17 percent in the previous quarter.
