Jefferies continues to list HDFC Bank as one of its top investment picks, maintaining a ‘Buy’ rating with a target price of ₹2,400, indicating a 21% upside from current levels. The brokerage highlights stable asset quality, strong growth prospects, and merger synergies within the HDFC Group as key drivers for earnings and return on equity (ROE). Management reaffirmed its commitment to loan growth and expects deposit growth at a steady 16%, which Jefferies sees as core strengths. The bank’s stable asset quality, especially in retail and SME segments, is likely to boost its lending capacity. Jefferies expects credit growth to rise to 11% in FY26 from 5% YoY in FY25. The merger has enhanced cross-selling capabilities, with 95% of incremental borrowers now holding HDFC Bank accounts, up from 30% earlier. An improved funding mix and growing CASA deposits are expected to lower funding costs and support margin growth by FY27. Jefferies also sees declining attrition, now at 23% in FY25, as a positive, ensuring smoother leadership transitions despite retirements ahead.
