Turnaround For HDFC On Cards? Here's Why Shares Are Surging Today

  • Benzinga India
  • Stock Market News
Turnaround For HDFC On Cards? Here's Why Shares Are Surging Today
Credit: © Reuters.

Benzinga - HDFC Bank (NS: HDBK ) shares surged on Thursday after the bank posted a robust business update for the quarter ending March, propelling the Bank Nifty to a new high in early trade.

What Happened: HDFC Bank reported gross advances amounting to ₹25.08 lakh crore, marking a substantial 55.4% growth compared with the same period last year, the firm said in an exchange filing.

HDFC Bank reported a significant surge in domestic retail loans, which grew by 108.9% year-on-year, while commercial and rural banking loans expanded by 24.6%. Corporate and other wholesale loans witnessed a more modest growth of 4.1% compared to the previous year.

Deposits aggregated to ₹23.8 lakh crore, reflecting a notable growth of approximately 26.4%. Retail deposits saw a substantial increase of 27.8%, while wholesale deposits grew by 19.4% from the corresponding quarter of the previous year.

Analyst Calls: Brokerages have expressed bullish sentiments towards HDFC Bank. Prabhudas Lilladher maintained a "buy" call, observing a consolidation phase in the stock’s trading range. It said technical indicators suggest positive momentum, with potential upside targets identified between ₹1,700 and ₹1,800.

LKP Securities also recommended a "buy" rating, anticipating a turnaround for the lender with a stable return on assets despite higher operating expenses. The brokerage sets a target price of ₹1,762, reinforcing the positive outlook for HDFC Bank’s stock performance.

Price Action: HDFC Bank’s share price was up 2.47% at ₹1,518.85 around noon on Thursday.

Read Next: Bharti Hexacom IPO Day 2: Subscription Status, GMP, And Other Key Details

Read the original article on Benzinga

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

    Like 0
    Growth in advances should be seen as increased risk of bad loans and growth in deposits sholud be considered as more interest payout to depositors.
    Like 0

Related Articles