HDFC Bank Shares to Bounce Back by FY27, CLSA Projects 28% Upside

• CLSA maintains 'Outperform' rating on HDFC Bank, setting a price target of ₹1,200, implying a 28% upside.
• HDFC Bank's stock corrected 6-7% since its Q3 operational update, trading at a 10-12% price-to-book discount to ICICI Bank.
• The bank reported 12% loan book growth and 11.5% deposit growth, marking the first double-digit expansion post-merger.
• Loan-to-deposit ratio (LDR) rose to nearly 99%, exceeding management guidance to reduce it below 90%.
• CLSA believes investor concerns are temporary, expecting FY27 to be a 'bounce-back' year for HDFC Bank.

Why It Matters: CLSA projects a significant rebound for HDFC Bank by FY27, advising investors to buy despite recent dips.