The Indian private banking sector is witnessing a surge in investor interest as major players HDFC Bank, ICICI Bank, and Yes Bank report strong quarterly results and optimistic growth forecasts.
HDFC Bank: Solid Growth with Targeted Upside of Over 35%
HDFC Bank shares surged to ₹1950, marking a new 52-week high following the announcement of its Q4FY25 results. The bank reported a standalone net profit of ₹17,616 crore, representing a 6.7% year-on-year increase. Its net interest income (NII) grew by 10% to ₹32,070 crore.
Reflecting its strong performance, the bank has proposed a dividend of ₹22 per share, with a record date set for June 27, 2025.
Brokerages remain bullish on HDFC Bank:
- BNP Paribas set a target price of ₹2660, implying a potential 35% upside from current levels.
- UBS, Jefferies, and Nuvama have maintained ‘Buy’ ratings with target prices of ₹2250, ₹2340, and ₹2190 respectively.
- CLSA and Macquarie have issued ‘Outperform’ ratings, targeting ₹2200 and ₹2300 respectively.
ICICI Bank: Analyst Favorite, Eyeing ₹1700 and Beyond
ICICI Bank also showcased a robust performance, with its stock climbing over 2% to ₹1437, hitting a fresh 52-week high. The bank posted a Q4FY25 net profit of ₹12,630 crore, an 18% jump year-on-year, while its NII rose 11% to ₹21,193 crore. For the full fiscal year, ICICI Bank’s net profit stood at ₹47,227 crore, a growth of 15.5%.
The enthusiasm around ICICI Bank is palpable:
- Out of 52 analysts covering the stock, 49 have given a ‘Buy’ rating, and none have issued a ‘Sell’ call.
- Jefferies predicts the stock could reach ₹1710, while Macquarie and UBS estimate targets of ₹1670 and ₹1680 respectively.
- The bank has declared a dividend of ₹11 per share for FY25.
This broad analyst consensus underscores the strong fundamentals and growth trajectory expected for ICICI Bank.
Yes Bank: Profit Soars, but Analysts Advise Caution
Yes Bank experienced a notable 7% jump in its share price, reaching ₹19.37, after posting an impressive 63.3% year-on-year rise in net profit to ₹738.1 crore for Q4FY25. The bank’s NII also improved by 5.7% to ₹2,276.3 crore.
However, despite the sharp profit growth, market experts maintain a cautious stance:
- Among 12 analysts tracking Yes Bank, 10 have recommended a ‘Sell’, and 2 suggest ‘Hold’.
- Most price targets for the stock are between ₹15 to ₹17, indicating that the current market price is trading above consensus estimates.
- Nevertheless, some optimism exists: Anshul Jain from LKP Securities believes a breakout above ₹18.2 could push the stock towards ₹21.
Investors are advised to tread carefully despite the strong quarterly numbers, considering the stock’s volatile history and analyst skepticism.
Private Banks Powering Ahead
HDFC Bank and ICICI Bank continue to consolidate their leadership positions in India’s banking landscape with strong financials and widespread analyst support. While Yes Bank shows signs of recovery, cautious optimism remains the prudent approach for investors.
As India’s economy gains momentum, the private banking sector seems poised to ride the growth wave, offering compelling opportunities for both medium and long-term investors provided they pick their bets wisely.
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