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

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

HDFC Bank reported a significant surge in domestic retail loans, which grew by 108.9 per cent year-on-year, while commercial and rural banking loans expanded by 24.6 per cent.

www.benzinga.comUpdated: Thursday, April 04, 2024, 03:21 PM IST
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HDFC Bank 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 Rs 25.08 lakh crore, marking a substantial 55.4 per cent 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 per cent year-on-year, while commercial and rural banking loans expanded by 24.6 per cent. Corporate and other wholesale loans witnessed a more modest growth of 4.1 per cent compared to the previous year.

Deposits aggregated to Rs 23.8 lakh crore, reflecting a notable growth of approximately 26.4 per cent. Retail deposits saw a substantial increase of 27.8 per cent, while wholesale deposits grew by 19.4 per cent 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 Rs 1,700 and Rs 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 Rs 1,762, reinforcing the positive outlook for HDFC Bank’s stock performance.

Price Action

 HDFC Bank’s share price was up 2.47 per cent at Rs 1,518.85 around noon on Thursday.

(The article is published under a mutual content partnership arrangement between The Free Press Journal and Benzinga)

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