20 Jul , 2026 By : Debdeep Gupta
Shares of HDFC Bank Ltd fell more than 4 percent in early trade on Monday, July 20, despite brokerages maintaining positive ratings on the stock after the private lender reported its June quarter earnings over the weekend. The stock declined 4.29 percent to Rs 784.45 in early trade, extending its 2026 decline. HDFC Bank had ended Friday's session 1.4 percent higher at Rs 819.60, ahead of the earnings announcement.
HDFC Bank reported a standalone net profit of Rs 19,059.72 crore for the April-June quarter, up 4.98 percent year-on-year but below the CNBC-TV18 poll estimate of Rs 19,332 crore. Net interest income (NII) rose 6.7 percent to Rs 33,535.95 crore, also below the poll estimate of Rs 34,353 crore. Net interest margin stood at 3.26 percent on total assets, while gross non-performing assets were at 1.17 percent and net non-performing assets at 0.41 percent as of June 30, 2026.
Brokerages remained constructive on the stock. Jefferies retained its 'Buy' rating with a target price of Rs 1,050, saying the slight miss on NII was offset by lower operating expenses and credit costs. Bernstein maintained its 'Outperform' rating with a target price of Rs 1,150, citing healthy balance sheet growth, operating efficiency and stable asset quality despite persistent margin pressure.
Nomura also reiterated its 'Buy' rating with a target price of Rs 950, describing the quarter as in line with expectations and highlighting improving loan and deposit growth momentum alongside pristine asset quality.
HDFC Bank has a market capitalisation of more than Rs 12.64 lakh crore. The stock had declined 17.2 percent so far in 2026 as of Friday's close, compared with a 6.9 percent fall in the Nifty 50.
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