HDFC Bank (HDFCB IN) – Q4FY26 Result Update – Deposit accretion and LCR remain key monitorables – BUY
Published on 20 Apr 2026
HDFCB saw a soft quarter as core PAT at INR 173bn missed PLe by ~5% due to lower NII and fees. Asset quality was under control that resulted in lower provisions. Deposit growth was strong at 8.6% QoQ and bank attributed this to focus on granular deposits. While LDR is not a constraint as per the bank, LCR is a bit lower at 114%. We are factoring a loan/deposit CAGR of 12/13% over FY26-28E that may translate to deposit requirement of INR 4.0-4.5trn. We trim NIM and fees for 27/28E which has led to cut in core PAT by avg. 3.0%. Due to cautious sector outlook on growth and NIM, we trim multiple to 2.2x from 2.5x but roll forward to FY28 core ABV. Hence, we tweak TP to INR 1,100 from INR 1,150. Retain ‘BUY’.
