HDFCBANK

HDFC Bank remains a consistent performer in India’s banking sector post its merger with HDFC Ltd. Loan growth at 12% YoY in Q1 FY26 reflects strong demand across retail and corporate segments. However, net interest margin (NIM) compression is still a worry as funding costs inch up. Asset quality remains stable with GNPA at 1.2%, a key positive. With strong capital adequacy and digital investments, the bank is well-positioned for long-term growth. At ~2x book value, the stock is attractively valued compared to peers. Good option for core portfolio allocation.