HDFC Bank shares slide: Stock down 4 per cent ahead of Q3 results — what experts have to say

HDFC Bank’s shares were lower by 1 per cent at Rs 942 on Thursday, marking its fourth consecutive day of fall. HDFC Bank shares have already slumped 4 per cent amid earnings concerns with the third-quarter earnings to be out on January 17.Despite this slowdown, analysts are hopeful about the overall performance of the bank in the coming years due to the stability in the growth of the bank’s balance sheet and improvement in the quality of its assets, although there is expected pressure on profit margins. The total loan value in the bank was at 29.46 lakh crores in December 2025. This is an increase of 9.8 percent from the previous year. The deposits in the bank are also up by 11.5 per cent at 28.60 lakh crores.Multiple brokerages have shared positive outlooks for HDFC Bank. Axis Securities said that the bank is on track to reach pre-merger performance levels. They expect growth to pick up in FY26 as the loan-to-deposit ratio improves. Yes Securities predicts loan growth around 2.5 per cent for the quarter, though they expect slight pressure on profit margins.The bank’s management has indicated that most lending rate adjustments are complete. They expect profit margins to improve as deposit rates decrease. This view is supported by Systematix, which suggests that lower deposit rates will negate any cut in lending rates.InCred Equities remains upbeat, pegging a target price of Rs 1,180, as cited in ET. They have particularly identified strength in the bank’s management, market share expansion, and asset quality. It is important to highlight that maintaining healthy deposit growth, despite managing risks, has been a remarkable attribute of this bank.When one looks at the bigger picture, it was seen that HDFC Bank had a good time in 2025 as its shares were up by 12 per cent. This makes one hopeful that its stability will continue despite fluctuating market conditions.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)