HDFC Bank and ICICI Bank shares hit 52-week high in early trade, and Yes Bank shares jumped 7 per cent following Q4 results.
After hitting fresh highs, HDFC Bank shares ended 1.10 per cent positive on the BSE at ₹1,937.55, and ICICI Bank closed at ₹1,409.40, up 0.20 per cent on the BSE.. Yes Bank ended 4.04 per cent higher at ₹18.82, after hitting intraday high of ₹19.37.
HDFC on Saturday posted a 7 per cent y-o-y increase in its Q4FY25 net profit at ₹17,616 crore, led by stable growth in net interest income (NII) and lower provisions. The FY25 annual profit grew 11 per cent on-year to ₹67,347 crore.
The bank’s overall advances were up 8 per cent while overall deposits rose 14 per cent y-o-y. Net interest margin (NIM) rose slightly by 3 bps in Q4.
Brokerages have been bullish on HDFC post strong Q4 numbers driven by sustained loan growth and improving asset quality and have revised target prices.
Global brokerage Jefferies has maintained buy rating at ₹2,340 target price per share, while Macquarie maintained outperform rating at ₹2,300.
Domestic brokerage Motilal Oswal has reiterated buy at ₹2,200, emphasising that the bBusiness growth was healthy aligning with the bank’s strategy to reduce the C/D ratio consistently. Asset quality improved, with slippages remaining at a controlled level.
Nuvama Institutional Equities has increased the target price from ₹1,950 to ₹2,195 on the stock, reiterating buy.
“With RBI’s rate cuts, NIM would decline, but there are many moving parts. We have currently built in a 16bps decline for FY26 estimates. On the negative side, both EBLR and MCLR loans would get repriced lower through FY26. On the positive side, incremental deposits, e-HDFC’s borrowings and part of outstanding deposits shall also get repriced. CASA improvement is the key monitorable as it could shield NIM partly,” Nuvama added.
Yes Bankr’s profit after tax in Q4FY25 jumped 63 per cent led by NIM uptick, seasonal rise in fee and contained opex. The asset quality improved q-o-q.
ICICI Securities has upgraded the stock from sell to reduce at a revised target price of ₹16. Faster-than-expected ramp-up in organic priority sector lending (PSL) and higher-than-expected non-performing assets (NPA) recoveries pose as key risks, according to the analysts.
ICICI Bank remains Axis Securities preferred pick among banks, emphasising strong business growth while maintaining a steady C-D Ratio, strengthening fee income profile, controlled opex growth, pristine asset quality metrics, and adequate capitalisation. The brokerage has reiterated buy at a target price of ₹1,650.
CLSA and Macquarie have assigned outperform ratings on ICICI at ₹1,700 and ₹1,670 target prices, respectively.
In addition, Jefferies has retained ICICI as its top pick, maintaining buy at a target price of ₹1,710.
Published on April 21, 2025
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