Now Reading: HDFC Bank stock flat as BofA flags strong fundamentals
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HDFC Bank stock flat as BofA flags strong fundamentals
HDFC Bank shares traded flat at Rs 725.85 on the NSE on Wednesday after moving between Rs 724.15 and Rs 728.80, even as a Bank of America Global Research report named the…
HDFC Bank shares traded flat at Rs 725.85 on the NSE on Wednesday after moving between Rs 724.15 and Rs 728.80, even as a Bank of America Global Research report named the lender among the strongest-performing major banks. The stock has hit a 52-week low of Rs 715.10 on August 19 and is down 26.83% year to date.
BofA said HDFC Bank and ICICI Bank reported stronger fundamentals than peers, with CET1 ratios of 17.4% and 16.25% respectively, and among the lowest gross and net NPL ratios among major Indian banks as of June. The Nifty Private Bank index gained over 1% to 27,733.10, though HDFC Bank and IndusInd Bank traded in the red.
Total traded volume stood at 54.30 lakh shares valued at Rs 394.52 crore, with sell quantity outpacing buy quantity. The bank’s market capitalisation was Rs 11.18 lakh crore, with an adjusted P/E ratio of 13.99.
Indian Opinion Analysis
BofA's endorsement matters because large foreign institutional investors often rely on such reports for portfolio allocation decisions in Indian equities. HDFC Bank's 27% year-to-date decline has erased roughly Rs 4 lakh crore in market value since early 2026, raising questions about whether the selloff is overdone relative to its CET1 ratio of 17.4%, which is the highest among major private banks. The next test will come when the bank reports its September-quarter earnings, where loan growth and net interest margin trends will confirm whether BofA's thesis holds.
Source: thehindubusinessline.com
This brief was synthesised by AI from the source linked above.
