HDFC Bank shares went up on Monday after the bank reported a 12% rise in net profit for the June 2025 quarter. The stock opened 1.8% higher at ₹1,993.2 on the NSE. But with NIMs falling and margins under pressure, many are asking: should you buy, sell, or hold HDFC Bank shares?
Let’s break it down.
A Strong Quarter, But Not Without Warnings
HDFC Bank posted a standalone net profit of ₹18,155 crore, compared to ₹16,175 crore last year. Interest income for the quarter stood at ₹77,470 crore—up 6% year-on-year.
The Net Interest Income (NII) came in at ₹31,438 crore, growing 5.4%. However, the bank’s Net Interest Margin (NIM) dropped to 3.35% from 3.46% in the March quarter. This happened because deposit costs grew faster than returns from loans.
While profits look good, this NIM dip raised some eyebrows.
Brokerages Say ‘Buy’—Here’s Why
Despite margin pressure, many experts see the dip as temporary. Brokerages are still bullish.
- Nuvama kept its ‘buy’ rating and raised the target to ₹2,270. They expect NIMs to stabilize in the second half of FY26, with faster growth to follow in FY27.
- Emkay Global called out the smart use of one-time gains from the listing of HDB Financial Services. The bank used it to boost its provision buffer by ₹10,700 crore—making the balance sheet more solid.
- Motilal Oswal expects NIMs to fall a bit more in Q2, due to rate cuts, but still sees long-term potential. It kept a ‘buy’ rating with a ₹2,300 target.
Also Read HDFC Bank CEO Becomes Highest Paid Banker in FY25: Check What Other Top Bankers Earned
Growth Ahead? Bank Says Yes
HDFC Bank said it plans to grow faster in H2 FY26 and beat industry growth in FY27. It’s also working to bring down its credit-deposit ratio steadily while boosting loan growth.
Even with rising costs, the bank is focusing on strong fundamentals and stable returns.
So, Should You Buy, Sell, or Hold?
If you’re looking at the long game, experts say ‘buy’. Yes, the NIM drop is a concern—but the profit growth, stronger provisions, and positive guidance for H2FY26 paint a hopeful picture.
If you already hold the stock, staying invested makes sense. If you’re new, this could be a smart time to enter—before the growth kicks in next year.
HDFC Bank is playing the long game. It’s not perfect now, but the signs are clear: the bank is building for a stronger second half. With top brokerages betting on a bounce, it’s worth watching closely—or even backing confidently.
Also Read Anthem Biosciences Lists at 27% Premium After Strong IPO; Should You Buy, Sell or Hold?
