HDFC Bank Share Price Nears Record High Ahead of Q2 Results

HDFC Bank shares continued their upward trajectory, inching closer to record highs as the stock touched ₹1,009. This is the fourth day in a row that the stock has posted gains. highlighting strong market momentum ahead of the bank’s September quarter results scheduled for release tomorrow.

The rally reflects investor confidence and the market’s focus on India’s largest private sector lender, as HDFC Bank maintains steady growth despite muted expectations for Q2 performance.

Market Performance

The broader banking sector benefited from HDFC Bank’s gains:

• Nifty Bank reached a fresh all-time high of 57,830 points, posting month-to-date returns of 5.4%.
• Nifty 50 scaled to its highest level since October 2024, now just 2% away from its lifetime high.

HDFC Bank’s consistent upward movement has contributed to positive market sentiment, underscoring the weight the lender carries in the Indian stock market.

HDFC Bank Q2 Results Preview

Investors are awaiting the September quarter numbers to assess the bank’s performance amid changing economic conditions:

• Net Interest Income (NII) is projected at ₹31,561.1 crore, up 5% YoY and 0.4% QoQ.
• Net Interest Margin (NIM) expected around 3.4%, showing a decline of 22 bps YoY and 7 bps sequentially.
• Credit costs are anticipated to remain manageable, with potential moderation in asset quality and reduced slippages in agri-related non-performing assets.

The Reserve Bank of India’s interest rate cuts earlier this year, totaling 100 basis points, have influenced lending and deposit rates, impacting short-term margins.

Company Highlights

HDFC Bank continues to demonstrate stability in key financial metrics:

• Total Deposits increased by 15% YoY.
• Total Advances rose by 9% YoY.
• Gross NPA (GNPA) stands at 1.40%, and Net NPA (NNPA) at 0.50%, reflecting prudent risk management.

The bank’s consistent deposit growth and stable asset quality underline a cautious yet balanced expansion strategy. While margin pressure remains a consideration due to interest rate adjustments, the fundamentals continue to support steady long-term growth.

Summary

HDFC Bank’s share price, now hovering near ₹1,009, is approaching its record high of ₹1,018.85 recorded in July. With Q2 results around the corner, the stock has become a key focus for the market.

The combination of steady deposit growth, robust asset quality, and consistent profitability keeps HDFC Bank at the forefront of India’s banking sector. The market’s bullish sentiment, supported by gains in broader indices like Nifty 50 and Nifty Bank, reflects the central role HDFC Bank plays in driving confidence among investors.