International brokerage Jefferies reiterated its bullishness on India's largest private lender HDFC Bank Ltd, causing shares to soar over one percent in trade on Monday, June 16. Further, reports of HDB Financial Services' IPO, a key subsidiary of the bank, drove bullishness.
Jefferies remains positive on HDFC Bank, reiterating it as one of its top picks in the banking sector. According to the brokerage, the bank’s management expects supportive policy measures to drive consumption and boost credit demand in the second half of FY26.
The brokerage maintained its 'buy' tag, with a price target of Rs 2,380, indicating an upside of 23 percent from current levels. At 1.55 pm, HDFC Bank's stock is quoting Rs 1,936.2 apiece, up one percent on the NSE.
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HDFC Bank has reaffirmed its loan growth guidance, which is expected to be in line with the sector in FY26 and ahead of peers in FY27. While net interest margins (NIMs) may come under pressure in the near term, Jefferies anticipates a recovery by FY27. The bank’s asset quality continues to remain stable and healthy.
On recent allegations concerning the bank and its CEO, Jefferies sees them as a non-event, though it acknowledges the surrounding noise.
Further, HDFC Bank shares are in the news as its key subsidiary HDB Financial Services gears up for its public issue. Moneycontrol exclusively reported that HDB Financial Services is planning to launch its much-anticipated Rs 12,500-crore IPO, India's biggest ever by an NBFC, by June-end.
"The UDRHP (updated draft red herring prospectus) has been filed and the plan is for the red herring prospectus to be submitted in a few days, followed by the anchor portion on June 24. As of now, the target is to open the issue for public subscription between June 25 to June 27," two persons said.
One of them added that if there were any sudden, adverse events, change in market conditions or unexpected delays, then the above dates may change. A third person said that HDB Financial Services is targeting a post-money valuation of around $7.2 bn (around Rs 62,000 crore) at the higher end of the price band.
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