Shares of HDFC Bank surged 3.6 per cent on Monday, leading the Nifty 50 gainers after the lender reported robust growth in deposits and advances for the first quarter of FY27 in its provisional business update.

The stock ended 3.60 per cent positive on the NSE at ?829.85, hitting a high of ?831.50.

The bank’s gross advances rose 15.4 per cent y-o-y, while deposits increased 14.7 per cent y-o-y.

According to the bank’s regulatory filing, period-end deposits stood at about ?31,70,500 crore as of June 30, 2026, compared with ?27,64,100 crore a year earlier, reflecting a growth of around 14.7 per cent y-o-y.

Bernstein noted that period-end loan growth of 15.4 per cent y-o-y and deposit growth of 14.7 per cent y-o-y likely imply credit growth broadly in line with the banking system and deposit growth ahead of industry trends. It also said CASA deposit growth continued to improve, with the gap between total deposits and CASA deposits narrowing further. However, the brokerage added that growth in average loan and deposit balances was lower than period-end growth rates, suggesting net interest income growth could lag the headline expansion in loans and deposits.

Morgan Stanley maintained an overweight rating on HDFC Bank with a target price of ?1,025 and said it believes the share price will rise over the next 60 days. The brokerage said there was a perceptible pickup in y-o-y growth in gross advances and managed assets during the June quarter. It added that the valuation remains attractive compared with the stock’s historical bands, while sustained and gradual improvement in fundamental performance and a narrowing financial performance gap with peers should support stock outperformance.

Jefferies reiterated its buy rating with a target price of ?1,050. The brokerage said HDFC Bank’s loan growth improved to 15 per cent y-o-y in the June quarter from 12 per cent in March, reflecting an uptick in the sector and greater retention, although AUM growth was lower at 12 per cent. It added that deposit mobilisation was healthy at ?652 billion, up 32 per cent y-o-y, supporting a 15 per cent y-o-y rise in deposits.

In its broader banking sector note, Morgan Stanley said loan and deposit growth picked up for most banks on a seasonally adjusted y-o-y basis and came in generally above its preliminary preview estimates. The brokerage said HDFC Bank recorded a meaningful pickup in y-o-y loan growth, which is positive for investor sentiment.

Morgan Stanley also said Axis Bank continued to see volume momentum, with deposit growth much higher than expectations, while investors would be watching the implications for net interest margins. It added that Kotak Mahindra Bank saw moderation in both loan and deposit growth, while IDFC First Bank maintained loan growth above 20 per cent and IndusInd Bank showed early signs of balance sheet stabilisation alongside improved deposit momentum.