As investors gear up for the eagerly anticipated Q4 results of major banking institutions, the spotlight is on HDFC Bank, IDFC First Bank, and Yes Bank. Scheduled announcements are set for next week, with HDFC Bank and Yes Bank preparing to release their Q4FY25 results, while IDFC First Bank will disclose its financials on April 26, 2025. With market participants already sifting through preliminary figures, deciding which of these three banking stocks to invest in could be a challenge.

Banking Sector Performance Expectations

Market analysts predict that all three banks will report improved quarterly results compared to previous periods. HDFC Bank has shown steady growth in both CASA (Current Account Saving Account) and advances, while IDFC First Bank has excelled in expanding its loan and deposit portfolios. Similarly, Yes Bank has also reported a positive trend in CASA, indicating that both banks have effectively managed to reduce their funding costs. Notably, IDFC First Bank has made strides in its CASA deposits and ratio, positioning it favorably for the upcoming quarter.

• HDFC Bank: Modest growth in CASA and advances
• Yes Bank: Improvement in CASA, reducing funding costs
• IDFC First Bank: Notable increase in loans and deposits

Experts suggest that short-term investors might find opportunities in IDFC First Bank, while those with a long-term outlook should consider HDFC Bank as the more stable investment.

Detailed Insights on Bank Performance

Seema Srivastava, a Senior Research Analyst at SMC Global Securities, offered an in-depth comparison of the three banks:

• HDFC Bank: Reported a 3.1% quarter-on-quarter growth in deposits, a 3.3% rise in advances, and a 1.7% increase in average CASA deposits, with period-end CASA up by 8.2% in FY25.
• Yes Bank: Achieved 0.7% QoQ growth in loans, a 2.6% rise in deposits, and improved its CASA ratio to 34.3% with a liquidity coverage ratio (LCR) of 125%.
• IDFC First Bank: Experienced a 4.7% increase in loans, 6.7% growth in deposits, and a CASA ratio of 46.9% in FY25.

Given these insights, HDFC Bank emerges as the frontrunner, consistently achieving growth in profits and maintaining asset quality, while Yes Bank faces challenges related to asset quality.

Stock Price Predictions for HDFC Bank, IDFC First Bank, and Yes Bank

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, highlighted the technical outlook for these stocks:

• HDFC Bank: The stock is currently testing a 72-week cup and handle pattern, and analysts believe crossing the ₹1820 mark could lead to further gains, potentially reaching ₹2050.
• IDFC First Bank: After a steep decline of 47.77% over the past 80 weeks, it has formed a bullish engulfing pattern, suggesting a bounce back toward its 50-week EMA at approximately ₹67.
• Yes Bank: Despite a 51% correction over 57 weeks, it remains in a trading range between ₹15.70 and ₹18.21, with a breakout above ₹18.25 necessary for a positive momentum shift.

Final Thoughts on Investment Strategies

In conclusion, technical analysis indicates that HDFC Bank is the standout performer among these banking stocks. For those looking for a more aggressive strategy, IDFC First Bank presents a potential bounce-back opportunity, while Yes Bank investors may need to adopt a wait-and-see approach for now.

For more insights and updates on the banking sector, consider visiting SMC Global Securities or Lakshmishree Investment and Securities.