Jun Qtr: In line Result As Op Leverage & Lower Credit Cost Offset lower NIM

Research evidence excerpt

Jun Qtr: In line Result As Op Leverage & Lower Credit Cost Offset lower NIM

India | Banks

HDFC Bank EquityJulyResearch19, 2026

ESTIMATE CHANGEJun Qtr: In line Result As Op Leverage & Lower

RATING BUYCredit Cost Offset lower NIM

PRICE INR820.80^

For Jun-Qtr, HDFC's profit of Rs191bn, up 5% YoY, was in line with estimates

as slight miss on NII was offset by lower opex & credit cost. Bank's desire PRICE TARGET | % TO PT INR1,050 | +28%

to participate in corp lending lifted loan growth to 16% YoY, but dragged 52W HIGH-LOW INR1,020.35 - INR726.75

NIMs by 12bps QoQ, limiting NII growth to 7%. Slower growth in Opex (slow FLOAT (%) | ADV MM (USD) 99.7% | 302.82

branch/staff growth) and lower credit costs (low slippages) aided profits. MARKET CAP INR12.6T | $131.3B

We tweak estimates and see 15% CAGR in PBT (ex-treasury). HDFCB stays TICKER HDFCB IN ^Prior trading day's closing price unless otherwise

among top picks. noted. Price: Intra-day 19/03/2026

Push for loan growth drags NIM. During the quarter, HDFCB's loan growth surged to 16% RATING BUY

YoY led by higher growth in corporate loans, which we believe reflects its choice to hold on TICKER HDB

to client relationships. As a result, its corporate loans rose by 19% YoY/ 4% QoQ vs. 13% YoY

PRICE $26.38^

until Mar-26. Deposits grew by 15% and larger funding needs may have pushed to raise term

deposits, especially corporate deposits, at higher cost, which dragged NIMs (on avg. assets) PRICE TARGET | % TO PT $34.00 | +29%

by 12bps QoQ/ 9bps YoY. So, NII was up just 7% YoY, marginally lower than our estimates.

LDR of 96% will likely moderate going forward and LCR is at 115%. FY (Mar) CHANGE TO JEFe JEF vs CONS

2027 2028 2027 2028

Operating efficiencies aid PPOP growth. Fee growth of 11% YoY was led by higher growth

REV NA NA NA NA