India’s Second-Largest Private Lender A Favorite Amongst Emerging Market Fund Managers 1


HDFC Bank Limited (HDB) is at number 5 in our list of the most popular stocks that emerging market funds (EEM) (VWO) are invested in. The company was among the top 10 holdings of 5 out of 10 funds that were part of our analysis. These are:

Among institutional investors, these are the funds that are invested into the HDB ADR currently:

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17.6% rise in net interest income

India-based HDFC Bank Limited provides a range of banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. HDB is the second largest private sector lender in India.

Trading under the ADR ticker HDB on the NYSE, the company has the market capitalization of $49.31 billion. On January 24, the company reported its financial results for the fourth quarter of 2016. In 4Q16, the bank saw its net profit jump 15%, with its net interest income increasing by 17.6% from a year ago. Average assets grew by 18.6%. Fee income could, however, rise by only 9.4% due to the demonetization of certain high-denomination notes in the country on November 8, 2016.

Trading at $69.38 a share currently, the stock is already up 13.6% for the year. It has gained 14.25% over the past 1 year.

Analyst recommendations: BUY

The stock currently has a 100% BUY recommendations from analysts. Consensus 12-month target price for the stock stands at $74.4. The stock is currently trading at $69.38.

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