HDFC Bank: Growth To Rebound From Here, Reiterate Hold Rating On Expensive Valuation
Summary
- HDFC Bank shows improving loan growth and deposit trends, with LDR nearing comfortable levels and system liquidity set to improve.
- Asset quality remains stable, though NIMs face short-term headwinds from rate cuts and slower liability repricing.
- Despite strong fundamentals and growth prospects, HDFC Bank's current valuations remain expensive by both PE and P/B metrics.
- I maintain a neutral (hold) rating, as upside is limited by high valuation despite positive operational momentum and sector tailwinds.
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