HDFC Bank targets rise to ₹2,250 as Credila gain looms

Snapshot: price action and analyst stance

HDFC Bank remained in focus after multiple brokerages reiterated bullish views and raised target prices. As on 05 Jun, 2026 at 03:59 PM IST, the stock was down 0.95% versus the previous close of ₹753.65, trading at ₹747.05. Separately, another market update around the Credila transaction noted the stock trading 0.40% lower at ₹1,442.90 on the BSE, after opening at ₹1,448.80 and touching an intraday low of ₹1,424.75.

A consensus snapshot in the provided data showed recommendations from 38 analysts with “STRONG BUY” as the headline call. The distribution included 21 “Strong Buy” and 16 “Buy,” with no “Hold,” “Sell,” or “Strong Sell” counts shown in the excerpted table.

UBS raises target to ₹2,250; Buy reiterated

UBS analyst Vishal Goyal updated the outlook for HDFC Bank Ltd, raising the price target to ₹2,250 from ₹2,160 and reiterating a Buy rating. The same note referenced the bank trading near a 52-week high of $12.34, with a market capitalisation of $172.2 billion, and described a strong Buy consensus among analysts.

The context matters because the price target hike came alongside a period where market participants have been balancing near-term margin and liquidity concerns with one-off income from the Credila stake sale and improving balance sheet metrics.

Nomura upgrades to Buy; target raised to ₹1,920

Nomura upgraded HDFC Bank from Neutral to Buy and raised its price target to ₹1,920 from ₹1,780. The rationale cited was the bank’s performance in deposits and asset quality.

Alongside this upgrade, a separate snippet included a “HDFC bank outperform” rating with a target price of ₹1,200 per share, highlighting that targets can vary widely across reports and time periods referenced in the compiled text.

Other brokerage targets mentioned

Several other targets and “Buy” recommendations were listed across sources. ICICI Securities was cited with a Buy call and a target price of ₹1,850 (research report dated April 21, 2024). BOB Capital Markets was listed with a Buy rating and a target of ₹1,872. Prabhudas Lilladher was cited with a Buy call and a target of ₹2,000 (also dated April 21, 2024). Emkay was also listed with a target of ₹2,000, while ICICI Direct was listed with a target of ₹1,850. Motilal Oswal Securities suggested a target of ₹1,950.

Broker targets at a glance

Q4FY24 results preview: Credila sale drives other income

Ahead of the January to March quarter results scheduled for Saturday, April 20, analysts expected a pick-up in profitability helped by the sale proceeds from the bank’s stake in HDFC Credila. The preview noted that HDFC Bank is likely to report a 30% to 60% year-on-year rise in net profit for the March quarter, led by a surge in non-interest income due to the stake sale.

Analysts also expected net interest income (NII) to rise about 25% year-on-year, while net interest margin (NIM) was expected to be broadly flat sequentially. Provisions were expected to fall sequentially, but remain higher year-on-year.

Key estimates: net profit, NII, provisions, and NIM

Axis Securities projected net profit of ₹15,755 crore, up 30.8% year-on-year from ₹12,047 crore. Axis also estimated NII of ₹29,356 crore (up 25.7% year-on-year) and pre-provision operating profit (PPOP) of ₹24,393 crore (up 31% year-on-year). Provisions were estimated at ₹3,418 crore, down 19% quarter-on-quarter but up 27.3% year-on-year versus ₹2,685 crore.

Sharekhan projected a steeper year-on-year profit jump, estimating net profit of ₹19,185 crore (up 59.2% year-on-year). Another estimate in the text pegged net profit at ₹15,653 crore (up 29.9% year-on-year) and NII at ₹29,144 crore (up 24.8%).

Nuvama flagged the Credila sale impact, stating a gain of ₹9,600 crore from Credila sales should be booked in the quarter. Another report also said other income for the fourth quarter would reflect about ₹9,000 crore as earnings from the stake sale.

Selected Q4FY24 forecasts mentioned

Balance sheet signals: deposits, LDR, and loan growth

Prabhudas Lilladher’s preview highlighted improving balance sheet management. It cited provisional numbers suggesting deposit accretion of 7.5% quarter-on-quarter, while the loan-deposit ratio (LDR) fell 610 bps quarter-on-quarter to 104% due to lower loan growth of 1.6% quarter-on-quarter.

One brokerage forecast loan growth of 1.6% quarter-on-quarter led by retail and CRB. It also noted NII could grow 2.5% quarter-on-quarter to ₹29,184.3 crore, while NIM may decline by 12 bps due to a sharp decline in LDR quarter-on-quarter.

Credila stake sale: what happened and why it matters

HDFC Bank completed the sale of a majority stake in its education finance subsidiary, HDFC Credila, for ₹9,553 crore (also stated as ₹9,552.73 crore) to private equity firms BPEA EQT and ChrysCapital. The bank disclosed that as of March 19, 2024, it sold 14,01,72,180 equity shares of HDFC Credila to the acquirers.

The acquirers mentioned included Kopvoorn BV, Moss Investments, Defati Investments Holding B V and Infinity Partners. After the transaction, HDFC Bank said it will retain a 9.99% stake in HDFC Credila.

The sale also connects to regulation. The Reserve Bank of India (RBI) had asked HDFC Bank in April 2023 to reduce its shareholding in Credila to 10% within two years of the lender’s merger with the erstwhile HDFC Ltd. The completion of the transaction was described as following RBI approval for the sale of around 90% stake.

Market impact: stock moves, highs, and investor focus

Market focus has not been limited to targets and quarterly earnings. One update stated that, at ₹1,442.90, the stock was trading 17.8% below the 52-week high of ₹1,757.80 touched on July 03, 2023. Another note said the stock had tumbled 12.5% on the BSE so far in CY24, compared with a nearly unchanged S&P BSE Sensex.

A separate observation in the text noted that although HDFC Bank reported a profit surpassing expectations in the third quarter, analysts pointed to weak margins and liquidity challenges, which contributed to a significant decline in the stock.

Why the story matters: one-off gains vs core trends

The Credila stake sale is significant because it can lift non-interest income in the reported quarter, affecting headline profitability. At the same time, multiple forecasts in the text kept attention on core operating variables such as NIM, deposit growth, LDR movement, and provisions. The mix helps explain why price targets can rise even when commentary flags near-term pressure points like margin compression.

Analyst expectations in the preview also suggest the market will separate one-off gains from recurring performance in NII, PPOP, and asset quality. Data points such as stable GNPA at 1.25% (as estimated) and improving deposit traction are being watched alongside the magnitude and accounting of the Credila-related gain.

What to watch next

With Q4FY24 results scheduled for April 20, investor attention is likely to stay on how much of the Credila transaction flows into reported other income and net profit, and what the bank says about margins, liquidity, and deposit growth trends. Broker targets ranging up to ₹2,250 indicate optimism in the compiled notes, but the near-term read-through will depend on the reported numbers and commentary.