$HDFCBANK

HDFC Bank Ltd shares are expected to remain in focus on Monday after India's largest private sector lender reported an in-line performance for the first quarter of FY27. While earnings broadly met market expectations, brokerages retained their positive outlook on the stock despite continued pressure on net interest margins (NIMs). For the April–June quarter, HDFC Bank posted a standalone net profit of Rs 19,059.72 crore, up 4.98 percent year-on-year, though slightly below the estimate of Rs 19,332 crore. Net interest income (NII) increased 6.7 percent to Rs 33,535.95 crore, missing the estimated Rs 34,353 crore. The bank reported a net interest margin of 3.26 percent on total assets, while gross non-performing assets (GNPA) stood at 1.17 percent and net non-performing assets (NNPA) at 0.41 percent as of June 30, 2026. Following the results, brokerages maintained their bullish stance on the stock. One brokerage reiterated its 'Buy' rating with a target price of Rs 1,150, implying an upside of more than 40 percent from Friday's closing level. According to the brokerage, HDFC Bank delivered another steady quarter, backed by healthy balance sheet growth. However, margins remained under pressure as lower loan yields and elevated funding costs continued to weigh on profitability. It noted that strong operating efficiency helped offset some of the margin impact, while stable asset quality provided additional support. Overall, the brokerage said the bank's performance reflects a franchise that is gradually normalising, although earnings growth is still constrained by margin headwinds. HDFC Bank shares ended Friday's session 1.4 percent higher at Rs 819.60, ahead of the quarterly earnings announcement. The stock has declined 17.2 percent so far in 2026, underperforming the Nifty 50, which has fallen 6.9 percent during the same period. HDFC Bank currently commands a market capitalisation of over Rs 12.64 lakh crore.