HDFC Bank (HDFCB IN) – Q2FY27 Result Update – Mr. Bagchi’s strategy for the bank is the key monitorable – BUY
Published on 18 Oct 2026
HDFCB saw a steady quarter as core PPoP was largely in-line. While NII met estimates, higher fees were offset by more provisions (ageing related). Adjusted for FCNR, loan growth at 3.4% QoQ was lower than ICICIB/AXSB. While reported NIM fell by 8bps QoQ to 3.32%, as per our calculations, adjusted for the FCNR impact NIM was flat to positive. As per the bank, NIM has bottomed out and may improve from the next quarter, driven by shift in credit flow towards retail/SME from corporate/home loans and impact of rate hike in Oct’26. Mr. Anup Bagchi’s strategy for the bank would be a key monitorable. We keep multiple at 1.9x on Sep’26 core ABV and keep TP at INR 950. Retain ‘BUY’.
