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HomeSHARE MARKET"Investors Need To Be Patient"; Don't Sell This Share; Strong Future Growth

“Investors Need To Be Patient”; Don’t Sell This Share; Strong Future Growth

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HDFC Bank Ltd (NSE: HDFCBANK): Shashidhar Jagadeesan, Managing Director and CEO of HDFC Bank, said in a conversation call on Monday with an expert that the new entity is now focusing on loan growth after the merger. For this, the bank also needs to raise funds. 

In an analyst call with a reputed brokerage firm, Jagadishan said that there is a need to increase sustainable deposits instead of maturing bonds. Due to slow deposit growth and pressure on margins in the third quarter, HDFC Bank shares are under continuous pressure.

“The growth of bank deposits will not be able to match the growth in loans overnight. We know that we have preponed loan growth and now we need to raise funds so that bond maturities can also be taken care of,” he said. Further, he said that the bank could better match deposits and loans.

Why Is There A Difference Between A Loan And A Deposit Book?

Jagadishan said that despite this change, HDFC Bank will remain financially stable and on the path of profit growth. HDFC Bank currently has a market share of 14-15% in loans. 

Whereas, the market share of this bank in deposits is 11-12%. HDFC Bank’s home finance division grew its loan book after the merger.

In comparison, the bank’s deposit book was tiny. In the third quarter of the financial year 2024, the loan-to-deposit (LDR) ratio of the bank had reached 110%. Before the merger, it was 85%.

What Is The Plan Of The Bank?

Analysts say that the bank will have to focus on increasing deposit growth, otherwise, in the short term, people may see an impact on growth due to high LDR. Shashidhar Jagadishan said that after the merger the bank got a big loan book. 

The bank will continue to maintain a high LDR incremental by balancing the loan deployment with payments. Talking about the liquidity coverage ratio, he said that the bank has always operated at 110-120% and is in a strong position. We are not after expensive deposits despite tight liquidity.

The MD & CEO of the bank said that the third quarter of the financial year 2024 itself is not an indication of future growth for the bank. In such a situation, investors need to be patient and keep an eye on how the bank is increasing deposits in the coming quarters.

About HDFC Bank Ltd Company 

HDFC Bank Limited, a financial conglomerate, offers a variety of financial services via its subsidiaries. These include banking, mutual funds, insurance, and other financial services. 

The Bank provides a variety of banking services and products. Commercial and Investment Banking, Transactional Banking, and Branch-Based Banking are all available.

The Treasury segment includes the net interest earned from its investment portfolio as well as money market borrowing, lending, gains and losses on investment transactions, trading in foreign currency and derivative contracts, and gains and losses on investment operations.

Retail Banking includes Digital Banking, Other retail banking, and Retail Banking. Wholesale Banking provides non-funding facilities and transaction services for large corporations, government units, financial institutions, and medium-sized enterprises.

Fundamental Analysis of HDFC Bank Ltd 

Market Cap₹ 11,04,239 Cr.
Current Price₹ 1,454
52-wk High₹ 1,758 
52-wk Low₹ 1,363
Stock P/E16.3
Book Value₹ 519
Dividend1.34 %
ROCE6.24 %
ROE17.1 %
Face Value₹ 1.00
P/B Value2.77
OPM47.5 %
EPS₹ 89.6
Debt₹ 21,39,212 Cr.
Debt to Equity7.39

HDFC Bank Ltd Share Price Target 2024 To 2030

Year1st Target2nd Target
2024₹ 1500₹ 1765
2025₹ 1800₹ 1954
2026₹ 2132₹ 2323
2027₹ 2435₹ 2654
2028₹ 2700₹ 3000
2029₹ 3123₹ 3432
2030₹ 3543₹ 3675
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HDFC Bank Ltd Shareholding Pattern

Promoters Holding
Dec 202225.60%
Mar 202325.59%
June 202325.52%
Sept 20230.00%
Dec 20230.00%
FII Holding
Dec 202232.10%
Mar 202332.24%
June 202333.38%
Sept 202352.13%
Dec 202352.31%
DII Holding
Dec 202228.13%
Mar 202328.09%
June 202326.75%
Sept 202330.39%
Dec 202330.54%
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Govt. Holding
Dec 20220.16%
Mar 20230.16%
June 20230.16%
Sept 20230.17%
Dec 20230.17%
Public Holding
Dec 202213.99%
Mar 202313.91%
June 202314.19%
Sept 202317.30%
Dec 202316.98%

HDFC Bank Ltd Share: Last 5 Years’ Financial Condition

To better understand how the market is performing, let’s look at the outlook of this share in the previous years. 

However, investors should be aware of the risks and the market conditions before making any investment decision.

Last 5 Years’ Sales:

2019₹ 105,161 Cr
2020₹ 122,189 Cr
2021₹ 128,552 Cr
2022₹ 135,936 Cr
2023₹ 251,764 Cr
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Last 5 Years’ Net Profit:

2019₹ 22,446 Cr
2020₹ 27,296 Cr
2021₹ 31,857 Cr
2022₹ 38,151 Cr
2023₹ 60,068 Cr

Last 10 Years’ Profit Growth:

10 Years:21%
5 Years:20%
3 Years:19%
Current Year:35%

Last 10 years’ Return on Equity (ROE):

10 Years:17%
5 Years:17%
3 Years:17%
Last Year:17%

Sales Growth Over 10 Years:

10 Years:17%
5 Years:15%
3 Years:12%
Current Year:59%

Conclusion

This article is a complete guide about HDFC Bank Ltd Share. This information and forecasts are based on our research, company fundamentals, history, experiences, and technical analyses. 

Also, We have discussed the share’s prospects and growth potential in detail.

This information will help you in your further investment. 

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