New Delhi: The Bank of America (BofA) on Tuesday slashed HDFC Bank’s share price target and revised its rating following a 20 per cent rally in the lender’s stock price.
HDFC Bank’s share price rallied on expectations of a potential rise in its weightage in the MSCI index.
However, BofA downgraded HDFC Bank’s rating to neutral and slashed the share price target to Rs 1,830 apiece from Rs 1,850 apiece earlier, citing a balancing out of positives and negatives over the current financial year.
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HDFC Bank’s net interest margin recovery is likely to get delayed if the RBI introduces shallow rate cuts, whose effects are unlikely to take effect before FY26, said BofA.
BofA projected a narrow risk-reward range for HDFC Bank’s share price going forward.
HDFC Bank share price
HDFC Bank’s shares closed at Rs 1,628.70 apiece, down 0.48 per cent on Wednesday. HDFC Bank’s shares hit a high of Rs 1,640.00 apiece snd a low of Rs 1,620.75 apiece during intra-day trade on Wednesday. The bank’s stock opened at Rs 1,629.95 apiece.
The company’s stock price was down 6.78 per cent in past 5 days.
The share price was up 4.18 per cent in the past month.
In the past 6 months, HDFC Bank’s share price was down 1.78 per cent.
HDFC Bank’s stock price was down 1.83 per cent in the past year.
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HDFC Bank Q1 business update
India’s largest private lender reported flat sequential growth in the first quarter of FY25 while gross loans were down 0.8 per cent on a quarterly basis. The lender’s gross loans rose 10.8 per cent on-year basis.
HDFC Bank reported a 15.3 per cent on-year rise in deposit growth. CASA deposits were down 5 per cent on a sequential basis while the CASA ratio was down 190 basis points to 36 per cent.
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HDFC Bank’s share price target was revised by the Bank of America on Wednesday citing a delay in the bank’s net interest margin recovery. Know what it means. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
