Prabhudas Lilladher Recommends 'BUY' on HDFC Bank; Sets Target at Rs 1150

• HDFC Bank reported a strong quarter, with core PAT of Rs 156.5 billion exceeding Prabhudas Lilladher's estimates by 5.9% due to lower provisions.
• Net Interest Income (NII) was 1.2% above expectations, driven by an 8bps QoQ increase in Net Interest Margin (NIM).
• Asset quality remained healthy, supported by lower net slippage and a Rs 10.4 billion contingent provision reversal from improved corporate credit performance.
• The bank aims for loan growth above the system's projected 12-13% by FY27E, with Loan-to-Deposit Ratio (LDR) expected to reach around 90%.
• Prabhudas Lilladher maintains a 'BUY' rating with a Sum-of-the-Parts (SOTP) based target price of Rs 1,150, despite factoring a conservative ~12% loan CAGR over FY26-28E.

Why It Matters: Prabhudas Lilladher recommends buying HDFC Bank, citing strong quarterly results and a target price of Rs 1150.