HDFC Bank Q2 Review: Brokerages See Margin Support, But Execution Risks Remain
HDFC Bank flagged a risk in a quarterly results development.
· NDTV Profit
Analysts flagged muted deposit growth in CASA, margin pressure from FCNR-B deposits and execution risks, but expect improving margins and resilient asset quality to support earnings.
The analysis
Against that, the stock is +0.3% on the day at ₹728.85, and has returned -9.8% over three months. It sits 28% below its 52-week high, which means a good deal of bad news was already in the price. The banks sector has moved -3.1% over the same period, so HDFC Bank is running 6.7 points behind its peers.
This is an Asset quality / margins event. For lenders the headline profit is the least informative line. Slippages, credit cost and margin direction determine whether the quarter is repeatable. On the day the stock is +0.3%, so the price barely moved, which suggests this was expected or is seen as immaterial.
For HDFC Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
- Credit growth and asset quality are the pulse of the financial sector, which is the largest weight in Indian indices.
Market context
- The company directly in focus is HDFCBANK.
- Sector exposure: Banks.
In this story
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