Hdfc bank bonus share: HDFC, a large bank of private sector in the country, has announced to issue bonus shares to its shareholders in a ratio of 1: 1. A record date for this has been set on 26 August, so now investors are eyeing the bank shares.

On August 22, in early trade, the bank shares on BSE and NSE continued to fluctuate. Meanwhile, brokerage firm Jefferies has advised to buy HDFC Bank shares with a target price of Rs 2,400., its stock on Friday recorded a decline of 1 percent.

HDFC Bank shares trading

HDFC Bank shares were trading at Rs 1,973.90 per share on the NSE on Friday, the last trading day of the week. The bank’s market cap is Rs 15,14,987.03 crore. This stock is close to your intraday of Rs 1,972 per share. In the last 5 sessions, the stock has declined by about 2.4 percent. Nevertheless, this stock continues to increase by 11 percent year after year. In the last one year, HDFC Bank shares have gained 21 percent.

Why Brokerage trusts the bank shares?

Global brokerage firm Jefferies has advised to buy HDFC Bank shares with a target price of Rs 2,400. Jefferies says that HDFC Bank’s asset quality remains stable. This will help the bank to focus on the retail and SME loans of Behar Quality and will also increase its ability to give loans.

Jefferies hopes that HDFC Bank’s credit growth will improve by 11 percent by financial year 2026. In addition, the brokerage firm believes that American tariff is a major concern for all banks including HDFC Bank. However, Jeffers is not expected to have any significant impact on HDFC Bank as its investment in SME/export-oriented areas has better rating customers.

Meanwhile, Kotak Institutional Equities have recommended to add HDFC Bank shares into the portfolio with a target price of Rs 2,200 following the first quarter results.

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Hdfc bank: The difference between the market cap of private sector bank HDFC and American Investment Bank Goldman Sachs in India is steadily decreasing. Where the market capital of HDFC Bank Limited has reached Rs 14.69 lakh crore ($ 17628 million). At the same time, the market capital of Goldman Sachs is Rs 14.93 lakh crore ($ 17916 million).

Amazing boom in bank shares

HDFC Bank’s market cap has jumped from its 52-week low of Rs 1,426.80 in April 2024 to almost equal and now its share price is close to Rs 2000. According to a report by IIFL Finance Limited, HDFC Bank shares have increased amazing, which is about 34 percent above its 52 -week low, which has a strong quarter result, strategic balance sheet management and positive market sentiment.

These are also due to boom in shares

According to another report by Nuwama Wealth and Investment Limited, another reason for the bank’s stock accelerated with Housing Development Finance Corporation (HDFC Limited) after merger in 2023, the bank focused on reducing the deployment related challenges. This also led to a bounce in the bank shares. The bank’s loan portfolio has also increased considerably due to this merger. However, compared to this, the deposit base is very low, due to which in March 2024, the loan-to-deploy ratio (LDR) remained 104 percent. After this, the bank again focused on raising deposits, which has reduced the LDR to 96.5 percent by March 2025.

LDR level will be less

The bank’s CFO Srinivasan Vaidyanathan has said that the management of the bank hopes that by FY 27, LDR Housing Development Finance Corporation will return to 85-90 % of the first level of merger from Finance Corporation.

According to Nuwama’s report, the bank has taken good advantage of improvement in systematic liquidity and cut in repo rate. This will help to keep the net interest margin stable, which is expected to reach 3.5-3.6 percent by FY 27 as high-cost borrowings are ending and the loan mix is ​​shifting to high yield retail assets. Nuwama has estimated the compound rate (CAGR) of 15 percent of the bank’s deposit growth between financial year 25 and FY 27.

On the other hand, unlike HDFC Bank, Goldman Sachs is traditionally not dependent on deposits or loans. Due to this, direct comparison cannot be made between the two. Nevertheless, the less difference between the market capital of both shows that HDFC Bank has the ability to give a tough competition to many big financial institutions in the world. Apart from this, in addition, Goldman Sachs has recently given a ‘BUY’ rating to HDFC Bank shares.

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