On Thursday, HDFC Bank made headlines as its share price soared to a new 52-week peak, climbing 2.2% to reach an impressive Rs 1,919.70 on the National Stock Exchange. This remarkable performance positioned the bank as one of the standout performers in the Nifty 50, driving substantial gains throughout the trading day.
Strong Year-to-Date Performance
Investors have witnessed significant growth in HDFC Bank’s stock, with returns nearing 7% since the start of the year. Over the past year, the share price has surged by more than 27%. In the last six months alone, the bank has added to its investors’ wealth by 14%, and in the past month, the growth stands at 10%. Notably, in the last five trading days, HDFC Bank’s stock has appreciated by 8%.
- Year-to-Date Return: ~7%
- One-Year Growth: >27%
- Six-Month Increase: 14%
- One-Month Growth: 10%
- Five-Day Surge: 8%
Comparing to Bank Nifty
In comparison, the Bank Nifty index has seen similar positive momentum, gaining 8% over the past five trading days. This benchmark has provided investors with returns of over 12% in the last month and 6% over the previous six months, culminating in a 15.3% increase in the last year.
HDFC Bank’s Q4 Business Update
In its latest Q4 FY25 business update, HDFC Bank reported impressive growth in key metrics. The bank’s deposits surged 14.1% year-over-year and 5.9% quarter-over-quarter, reaching Rs 27.15 lakh crore. Additionally, gross advances increased by 5.4% YoY and 4% QoQ, totaling Rs 26.44 lakh crore.
- Deposits Growth: 14.1% YoY, 5.9% QoQ
- Gross Advances: 5.4% YoY, 4% QoQ
- Total Deposits: Rs 27.15 lakh crore
- Gross Advances Total: Rs 26.44 lakh crore
In the current financial year, HDFC Bank securitized Rs 57,000 crore in advances, with Rs 10,700 crore completed in just Q4. The average deposits climbed 16% year-on-year and 3.1% quarter-over-quarter, reaching Rs 25.28 lakh crore. Furthermore, the Current Account Savings Account (CASA) deposits grew by 5.7% YoY and 1.4% QoQ, amounting to Rs 8.29 lakh crore.
Nuvama’s Insights on HDFC Bank
In a recent analysis, Nuvama Institutional Equities reaffirmed its ‘Buy’ recommendation for HDFC Bank, setting a target of Rs 1,950. The brokerage praised the bank for its extraordinary performance during the Q3 FY25 period, especially in a challenging economic climate.
HDFC Bank’s Q3 Performance Highlights
For the Q3 FY25, HDFC Bank reported a 2.2% increase in standalone net profit, amounting to Rs 16,736 crore, compared to Rs 16,372.54 crore in the same quarter last year. The net interest income rose by 7.7% YoY to reach Rs 30,650 crore, while the total income climbed 7% YoY to Rs 87,460 crore, up from Rs 81,720 crore a year prior.
In conclusion, HDFC Bank’s robust growth metrics and positive market performance continue to attract investor interest, positioning it as a key player in India’s financial landscape.
