HDFC Bank shares rise 1% after Q3 net profit jumps 19%; should you buy, hold or sell?

HDFC Bank shares gained over 1% to Rs 1,617 on NSE on Monday after the private lender reported a 19.9% jump in its consolidated net profit for the quarter ended December 2022.

Beating market estimates, it reported a net profit of Rs 12,698 crore. The bank’s December quarter net revenue grew by 18.3% to Rs 31,488 crore from Rs 26,627 crore last year. So

far this year, HDFC Bank’s share price has fallen over 1%, but it has rallied more than 18% in the last six months, and analysts maintain a bullish stance on the stock. Several

brokerages hold buy rating HDFC Bank shares with a target price of up to Rs 1,925 per share, implying a 20% upside. “HDFC Bank has reported steady performance for

Q3FY23. NII growth picked up while core fee income growth was also strong however opex growth was higher due to accelerated branch expansion & employees additions. The bank

reported healthy return ratios of 2.2% RoA and 18.8% RoE. Asset quality metrics are stable. While we remain positive on the bank, the near-term issue of the merger would continue

to remain a key overhang as we need to have clarity on the various dispensations needed for a smooth transition,” said Rahul Malani, Analyst Banking and NBFC at Sharekhan by BNP

Paribas.