The stock surged as much as 4% today and is now closing in on its 52-week high.
The upmove in the stock price came after HDFC Bank lowered savings account interest rate by 25 basis points (bps), its first cut since June 2020.
Global brokerage firm Goldman Sachs said that HDFC Bank reduced its savings rate by 25 bps to 2.75% for Deposits under ₹50 lakh. Goldman Sachs views this as a sign of confidence in deposit growth and an alignment with the Reserve Bank of India’s (RBI) stance.
The brokerage considers this rate adjustment a prudent step, especially in light of muted growth in savings deposits across the system, as customers become increasingly financially aware.
The move is expected to ease margin pressures amid a potential rate-cut cycle, Goldman Sachs added.
The brokerage maintains a ‘Buy’ rating on HDFC Bank, with a price target of ₹2,087 per share.
On the charts, the Relative Strength Index (RSI) of HDFC Bank is now at 58.2. An RSI reading below 30 indicates that the stock is “oversold”, while above 70 is considered “overbought”.
Out of the 48 analysts that have coverage on HDFC Bank, 42 of them have a ‘Buy’ rating on the stock, while six have a ‘Hold’ recommendation on the counter. BNP Paribas has the highest target on the stock at ₹2,660, while B&K Securities has the lowest at ₹1,627.
The private lender is set to announce its March quarter earnings on April 19, 2025.
Shares of HDFC Bank Ltd. are currently trading 3.46% higher at ₹1,869.20. On a year-to-date basis, the stock is up 5%.
