HDFC Bank (HDFCB IN) – Q3FY26 Result Update – Good quarter; LDR dynamic a key monitorable Balance sheet management supporting NI004D – BUY
Published on 18 Jan 2026
HDFCB saw good quarter as core PAT at Rs156.5bn beat PLe by 5.9% due to lower provisions. NII was 1.2% ahead of PLe led by better reported NIM which increased by 8bps QoQ compared to stable NIM for ICICIB. Asset quality was healthy led by lower net slippage and contingent provision reversal of Rs10.4bn driven by better credit performance by a large corporate. Bank expects system to grow by 12-13% in FY27E and it maintained its guidance of growing above system with LDR slated to touch ~90%. We are bit circumspect and factor a ~12% loan CAGR over FY26-28E, since to meet its guidance bank would have to capture incremental deposit market share of 20%+ which may not be easy in the current environment. We keep multiple at 2.5x on Sep’27 core ABV and maintain SOTP based TP at Rs1,150. Retain ‘BUY’.
