HDFC Bank stock gains focus as Citi lifts target to Rs 940

HDFC Bank is back in focus after a sharp recovery in its shares, with Citi raising its price target and analysts assessing whether the lender can turn improving operating trends into a sustained earnings rebound. ET Now published the analysis on Friday, November 13, 2026.

HDFC Bank stock traded at 23.30 euros on Lang & Schwarz at 09:37 CET on Friday, November 13, 2026.

Citi raises target as recovery takes shape

Citi lifted its HDFC Bank target by 7%, from 880 rupees to 940 rupees. Based on the rupee price cited in the ET Now report, the revised target implied 16% upside from 812.30 rupees.

The brokerage expects loan growth of 15% in fiscal 2027, with small and medium-sized enterprises, small and mid-market borrowers and unsecured retail lending identified as key drivers. Citi also expects return on equity to recover above 15% over the medium term as the bank works through profitability pressure following the HDFC Ltd merger.

Deposit repricing and refinancing are part of the recovery thesis because they could support a gradual improvement in the net interest margin. The bank's CASA ratio was cited at 31.6%, down from 38% in September 2023, while its net interest margin stood at 3.32%. ET Now also reported a 40 to 60 basis-point loan-yield disadvantage against peers.

Execution remains the central test

Citi expects stable asset quality to support the recovery, with credit costs seen at 0.4% to 0.5%. The main risks are slower deposit mobilisation, weaker loan growth and a delayed margin recovery. Those factors leave execution under the new management team as the key issue for investors rather than the target increase alone.

Kranthi Bathini, director of equity strategy at WealthMills Securities, said the stock could gain another 10% to 15%, while describing the shares as fairly valued against book value and other key parameters. He added that the next two quarters would be important for judging credit growth, revenue expansion and profitability.

Technical levels cited by ET Now put resistance at 816 rupees and support at 790 rupees. A sustained move above resistance could open the way toward 845 rupees and then 880 rupees, while a break below support could increase selling pressure toward the 760 to 750 rupee zone. These levels are market views, not company guidance.

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