HDFC Bank shares rise as loan book grows 4.9% sequentially; check analyst views & other details

Shares of HDFC Bank Ltd turned positive in early trade on Wednesday after the private lender recorded a quarter-on-quarter (QoQ) growth in loan book. HDFC Bank said its gross loans grew 4.9 per cent sequentially in the July-September quarter (Q2 FY24) to about Rs 23.55 lakh crore after its merger with parent Housing Development Finance Corp (HDFC). The combined entity's pro-forma merged advances grew by around Rs 1.10 lakh crore in Q2, from Rs 22.44 lakh crore as of June 30, 2023. HDFC was merged with HDFC Bank on July 1.

Deposits aggregated to about Rs 21.73 lakh crore at the end of the latest quarter. The bank's home loan disbursals stood at a record high of Rs 48,000 crore.

HDFC Bank's CASA ratio stood at around 37.6 per cent as of September 30, 2023, as compared to 45.4 per cent as of September 30, 2022, and 42.5 per cent as of June 30, 2023.

In addition, the lender has reportedly announced a management rejig to focus on its growing branch network and its mortgage book.

Technical views on HDFC Bank

HDFC Bank shares were last seen trading 0.93 per cent higher at Rs 1,522 on BSE over their previous close of Rs 1,507.95. The counter has lost around 7 per cent so far this year.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock has seen a decent correction of nearly 15 per cent from its lifetime highs in the last three months and has plunged below the 200-SMA (Simple Moving Average) on the daily timeframe. It is nearing the oversold territory, coinciding with the previous swing low of Rs 1510-odd level, adding to some constructive development for the bulls. However, the reversal is yet to be confirmed. Till then, the critical level to watch for is Rs 1,500 on the support side. A decisive breach below could disrupt the technical setup in the short run. On the flip side, a series of resistances is placed at Rs 1,560-16,00 levels, followed by Rs 1,600-1,626 in the comparable period."

Pavitraa Shetty, Co-owner, Tips2trades, said, "HDFC Bank looks oversold yet bullish on the daily charts with strong support at Rs 1,489. A daily close above resistance of Rs 1,538 could lead to target of Rs 1,600 in the near term."

Mileen Vasudeo, Senior Technical Research Analyst at Arihant Capital Markets, told BT TV, "For HDFC Bank, there could be some more downside possible. Even if there is a bounce back, it may not go beyond Rs 1,540. So, one can keep a stop loss at the said level and on the lower side Rs 1,450-1,425 levels could be expected in a couple of weeks."

HDFC Bank's stock was last seen trading lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 34.92. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 24.25 against a price-to-book (P/B) value of 4.06.

The scrip has an analyst target price of Rs 1,984, Trendlyne data showed, suggesting a potential upside of 30 per cent. It has a one-year beta of 1.21, indicating high volatility on the counter.

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