HDFC Bank trades mildly higher after Q3 results beat Street estimates: Should you buy, hold or sell?

HDFC Bank shares successful Thursday's league traded with mild gains adjacent arsenic the lender amazed the thoroughfare with a better-than-expected Q3 earnings. At astir 10:44 am, HDFC Bank's shares were trading higher by conscionable 0.2 per cent, portion astatine the day's precocious it touched levels of Rs 1,687 per stock connected the NSE.

For the December quarter, HDFC Bank posted a standalone nett profit of Rs 16,735.5 crore arsenic against analysts expectations of a marginal on-year diminution successful its nett profit.

According to Zee Business research, the backstage assemblage lender was estimated to registry a nett net of Rs 16,201 crore for the October-December period.

The bank's nett involvement income (NII)—or the quality betwixt the involvement earned and the involvement paid—increased to Rs 30,653.3 crore from Rs 28,471.3 crore a twelvemonth ago, translating to year-on-year maturation of 7.7 per cent, according to a regulatory filing. 

Zee Business analysts had pegged HDFC Bank's third-quarter NII astatine Rs 30,197 crore.

Nonetheless, the bank's plus prime deteriorated with nett NPAs as a percent of full loans—a measurement of plus quality—stood at 1.42 per cent successful the 4th ended December 31, rising from 1.36 per cent for the erstwhile 3 months and 1.26 per cent successful the 3rd 4th of FY24. 

Global brokerages presumption connected HDFC Bank station Q3FY25 earnings

Global brokerage UBS has maintained its bargain connected the lender with the people pegged astatine Rs 2,100, implying gains of implicit 26 per cent. The brokerage underlined that the tepid indebtedness maturation led to LDR oregon loan-to-deposit ratio diminution of 160bp sequentially to 98.2 per cent. Furthermore, adjacent though the lender's absorption has been assured connected plus quality, it sees maturation to inactive instrumentality long. Also, risk-reward is favourable at 1.9x FY26E P/BV, added UBS.