Shares of HDFC Bank slipped for the second consecutive day, declining 4.5% in 2 days to a low of Rs 955.9 on the BSE. The fall comes on the heels of the lender’s Q3FY26 business update, which was released yesterday.

While the update showed healthy year-on-year growth in advances and deposits, the stock came under pressure amid broader market sentiment and concerns over deposit traction.

As per the update, the bank’s average advances under management for the quarter stood at Rs 28.64 lakh crore, reflecting a growth of around 9% over Rs 26.28 lakh crore in the corresponding quarter last year.

On a period-end basis, advances under management were approximately Rs 29.46 lakh crore as of December 31, 2025, marking a 9.8% increase over Rs 26.84 lakh crore as of December 31, 2024.

Following the update, Nomura has offered its take on whether this correction presents a buying opportunity. Global brokerage firm Nomura has reiterated its ‘Buy’ rating, assigning a target price of Rs 1,120.

The brokerage highlighted that both loan and deposit growth remained modest in Q3. It added that the CD ratio nearly touching 100% could constrain future loan growth, making deposit mobilisation crucial for sustaining credit expansion.

Nomura believes that improved traction on deposits will be key for driving acceleration in loan growth and reiterated its positive stance on the stock despite near-term concerns.“We believe constrained deposit growth has weighed on loan growth this quarter as its CD ratio almost touched the 100% mark. Strong deposit mobilisation remains key for the bank to drive acceleration in loan growth going forward,” the brokerage firm said in its note.

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