HDFCBANK

July 7 (Reuters) - ** India's HDFC Bank HDBK.NS reported a 0.4% sequential growth in gross advances in Q1; 1.8% Q/Q climb in deposits

** Shares little changed on Monday in a flat market .BO

LOAN GROWTH INCHING CLOSER TO INDUSTRY AVERAGE

** Jefferies ("buy," PT: 2,340 rupees) says HDBK's Q1 loan growth has picked up, indicating bank is on track to take loan growth towards sector average by March 2026

** Citi ("buy," PT: 2,360 rupees) says while sequential advances growth was below its estimates, on-year growth trajectory is inching closer to industry average

** Bernstein ("outperform," PT: 2,300 rupees) says weak advances' growth was not a surprise as it comes amid a weak loan growth environment

** Brokerage adds that the wider loan to deposit gap is driving loan-to-deposit ratio down "faster" to lender's target

(Reporting by Kashish Tandon in Bengaluru)

((kashish.tandon[email protected]; Mobile: +91 8800437922))

Adds more background and share move from paragraph 2

July 4 (Reuters) - India's top private lender HDFC Bank HDBK.NS said on Friday that its sequential growth in deposits outpaced loans in the first quarter.

Deposits, as of the end of the June quarter, rose 1.8% to 27.64 trillion rupees (about $324 billion) from the previous quarter, while gross advances increased 0.4% to 26.53 trillion rupees, the Mumbai-based bank said.

Shares of the lender, the heaviest on the benchmark Nifty 50 .NSEI rose 0.4% in early trade, while the Nifty 50 was little changed.

HDFC Bank merged with parent HDFC in July 2023, adding a large pool of loans to its portfolio but a much smaller volume of deposits. That put the lender under pressure to either raise more deposits or scale back loan growth.

Overall credit growth across Indian lenders has been under pressure, data from the central bank showed in March, due to a moderation in personal and credit card loans following tighter rules by the Reserve Bank of India.

($1 = 85.3700 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia Cheema)

(([email protected]; X: @MukherjeeHritam;))

Rewrites with more details, background of IPO market in India

By Hritam Mukherjee and Kashish Tandon

July 2 (Reuters) - India's HDB Financial Services HDBF.NS jumped more than 13% in its trading debut on Wednesday, notching the non-bank lender a valuation of $8.2 billion at day's high, as investors bet on long-term growth prospects in the world's most populous country.

HDB's $1.5 billion IPO is the largest in India this year so far and also the biggest ever by a non-bank lender.

The stock rose to as much as 849.85 rupees in Mumbai compared with its offer price of 740 rupees. The shares were last trading at 833.55 rupees while India's benchmark Nifty 50 index .NSEI was marginally down.

"HDB Financial, with its strong parentage, has recorded a very encouraging listing, and its performance will definitely lend more courage to IPO hopefuls to test waters of public markets," said Mahesh Ojha, assistant vice president, research and business development at Hensex Securities.

Ojha sees a "long runway for expansion" for the lender, citing "resilient fundamentals" such as low gross non-performing assets, an annual profit growth rate of 5.4% and a wide distribution network.

The firm, a unit of India's top private lender HDFC Bank HDBK.NS, gives out personal, home, vehicle and gold loans, among other offerings. It had targeted a valuation of $7.1 billion.

Demand at the IPO was boosted by qualified institutional buyers such as foreign investors and mutual funds, whose bids were 55 times the shares reserved for them.

India's IPO market is witnessing an upswing after a slow start to the year.

As many as 143 IPOs are being planned worth a potential $26 billion, according to IPO tracker PRIME Database.

Firms have raised $5.86 billion through IPOs in 2025, maintaining India's position as the world’s second-largest IPO market after the U.S., according to LSEG data.

At HDB Financial's IPO, parent HDFC Bank sold 100 billion rupees of shares last week while the firm issued fresh stock worth 25 billion rupees. In all, the IPO garnered bids worth $19 billion. HDB also raised $321 million from anchor investors such as BlackRock.

The strong response indicates renewed investor confidence in Indian equities, thanks to easing global trade tensions and a recovery in the benchmark indexes, analysts said.

(Reporting by Hritam Mukherjee and Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)

(([email protected]; 8800437922;))

By Hritam Mukherjee

June 27 (Reuters) - HDB Financial Services' $1.5 billion IPO drew bids worth $19 billion by Friday's close as institutional buyers rushed for India's largest offering so far this year, signaling investor confidence in a stock market recovery.

India's IPO market is gaining momentum after a slow start, as the stock market stabilizes following earlier volatility driven by global trade concerns.

The blue-chip Nifty 50 index .NSEI, which hit a one-year low in April, now sits just 2.4% below record highs from last year, as easing geopolitical tensions and trade fears spurred risk-on sentiment.

HDB Financial, a unit of India's biggest private lender HDFC Bank HDBK.NS, saw its issue subscribed 16.7 times over, driven by qualified institutional buyers such as foreign investors and mutual funds who bid for 55 times their reserved portion.

Non-institutional investors bid for 10 times their portion, while retail investor interest was comparatively muted, with their shares being oversubscribed just 1.4 times, exchange data showed.

The strong investor response makes HDB Financial's IPO the most subscribed offering over $1 billion since Zomato's in 2021, data from Prime Database showed.

"The response to the issue has been very encouraging, and considering the issue size signals that investors are growing increasingly confident of the local market as global trade worries ebb out," said Narendra Solanki, head of research at Anand Rathi Shares and Stock Brokers.

"The bid numbers show that the primary markets are coming back to life after a lull earlier this year, and such a response for a sizeable issue like HDB's should give IPO hopefuls in the pipeline confidence to also come forth to test waters," Solanki added.

HDB Financial' s IPO, the biggest ever by an Indian non-bank lender, was one of six offerings this week, five of which were oversubscribed in a range of 2-86 times. Earlier this week, Credila Financial Services and Pine Labs filed for IPOs.

HDFC Bank, which holds a 94% stake in HDB, sold shares worth up to 100 billion rupees, while HDB issued new shares worth 25 billion rupees. The company is targeting a valuation of up to $7.1 billion at the upper end of the 700-740 rupees price band.

The stock is expected to start trading on July 2.

HDB had already raised $392 million from anchor investors, including BlackRock funds, Life Insurance Corporation of India (LIC) LIFI.NS and Norway's sovereign wealth fund.

(Reporting by Hritam Mukherjee in Bengaluru, additional reporting by Vivek Kumar M; editing by Chris Thomas and Tasim Zahid)

(([email protected]; X: @MukherjeeHritam;))

Adds background throughout, analyst comment in paragraph 8

By Kashish Tandon

June 26 (Reuters) - HDB Financial Services' $1.5 billion initial public offering was fully subscribed on the second day of bidding as investors lined up for India's biggest offering so far this year amid signs of a recovery in the capital market.

The non-bank lender received bids for 1.16 times the shares on offer, exchange data showed at the end of bidding on Thursday.

Top Indian private lender HDFC Bank HDBK.NS, which holds a 94% stake in HDB, is selling shares worth up to 100 billion rupees, while HDB is issuing new shares worth 25 billion rupees.

HDB set a price band of 700-740 rupees for the three-day share sale that ends on Friday. The stock is expected to start trading on exchanges on July 2.

Non-institutional investors bid for more than twice the portion set aside for them. Retail investors bid for 64% for their allotted portion, while qualified institutional buyers, such as foreign investors and mutual funds, bid for 90%.

HDB on Tuesday raised $392 million from anchor investors, including BlackRock funds, Life Insurance Corporation of India (LIC) LIFI.NS and Norway's sovereign wealth fund.

The offering comes as foreign investors return to Indian stocks after a major exodus, attracted by big-ticket block trades, which often precede a recovery in IPOs.

"The offering shows a recovery in IPO markets with sentiment improving and overall economic growth remaining resilient," said Narendra Solanki, an analyst at Anand Rathi.

The benchmark Nifty 50 .NSEI has rebounded nearly 18% from a one-year low hit in April, but still remains below record highs reached last September.

(Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman, Anil D'Silva and Sonia Cheema)

(([email protected]; 8800437922;))

June 19 (Reuters) - India's HDB Financial Services, a unit of private lender HDFC BankHDBK.NS, will open its initial public offering for subscription for retail investors on June 25, the non-banking financial company said on Thursday.

The IPO, which comprises fresh issue of shares worth up to 25 billion rupees ($288.25 million) and an offer for sale of shares worth 100 billion rupees, will open for subscriptions for big institutional investors or anchor investors on June 24.

($1 = 86.7300 Indian rupees)

(Reporting by Nishit Navin; Editing by Janane Venkatraman)

(([email protected];))

** Shares of private lender HDFC Bank HDBK.NS gain 1.1% to emerge as top gainer on the benchmark Nifty 50 index .NSEI, which is up 0.87%

** Stock top gainer on heavyweights Nifty financial services .NIFTYFIN and Nifty bank index .NSEBANK, up 0.67% and 0.53%, respectively

** Co stays among top picks for Jefferies on easing regulations, rate cuts and improvement in credit growth, after meeting with CEO and CFO

** Jefferies says HDBK management flagged that the 100 bps cut in cash reserve ratio by the central bank will aid lower lending costs and reduce costs for borrowers

** Said HDBK reiterated guidance on loan growth to be in line with the sector in FY26 and will likely be ahead in FY27

** Jefferies adds co's deposit growth continues to stay stronger than sector and should aid credit growth over two years

** Brokerage's rating on stock is "buy", target price us 2,340 rupees - reflecting a 22% upside on last close

** Stock up 9.4% YTD vs 5.5% rise in Nifty 50

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

** Shares of HDFC Bank HDBK.NS rise as much as 2.4% to record high of 1996.30 rupees; close 1.49% higher

** India central bank cuts key lending rate by a larger-than-expected 50 bps in a bid to support economic growth

** The RBI also cut the cash reserve ratio (CRR) by 100 bps, which will increase the banking system liquidity by 2.5 trillion rupees

** On the day, banking stocks close .NSEBANK 1.47% higher

** NSEBANK up ~11.2% YTD compared with ~5.7% gain in the benchmark Nifty 50 index .NSEI

(Reporting by Nishit Navin in Bengaluru)

(([email protected]))

By Swati Bhat and Siddhi Nayak

MUMBAI, April 24 (Reuters) - The decision by India's central bank to cut rates and flood the banking system with cash will do little to immediately boost demand in Asia's third-largest economy as global uncertainties restrain corporate investment, bankers and sources said.

The infusion of liquidity, along with two consecutive rate cuts, will at best prevent further deceleration in growth, which probably fell to a four-year low of 6.5% in the financial year ended March 31, 2025, they said.

The Reserve Bank of India's (RBI) rate actions and liquidity measures are a "welcome relief" for banks but the global macroeconomic outlook has become more uncertain due to the recent trade tariff-related measures and the volatility surrounding them, said Sashidhar Jagdishan, CEO of HDFC Bank HDBK.NS, India's largest private lender by assets.

"Corporates have adopted a wait-and-watch stance, and we are waiting for more clarity," he added.

On April 9, the RBI cut rates by 25 basis points to 6%, a second cut in as many meetings, and slashed India's growth forecast for 2025-26 by 20 basis points to 6.5%. Since January, it has also bought bonds and conducted long-term FX swaps, infusing over $70 billion into the banking system.

However, banks are now depositing an average 2 trillion rupees ($23.41 billion) at the RBI's overnight cash parking facility versus 750 billion rupees in January, indicating that most of the surplus cash is not being lent out.

Banks' lending rates have started declining while corporate bond yields too have fallen 45-60 bps across tenors.

Neither the higher liquidity nor rate cuts are enough to "move the needle" for kick-starting corporate loan growth, said Alka Anbarasu, associate managing director, financial institutions at Moody's Ratings.

In fact, private capital spending may slow further amid the global tariff wars, analysts said.

"Private capex is about the future and is always a function of the demand and not so much about the cost of capital," said Gaura Sen Gupta, an economist at IDFC FIRST Bank.

INFLATION COMFORT

The central bank views monetary easing as a means to curb any further downside to growth with softer inflation giving it the leeway to do so, a source aware of the RBI's thinking said. This was evident in the rate panel's minutes.

"The fact that growth needs support is clear but monetary stimulus is one of the many factors that can help revive growth and that too works with a lag of 6-9 months," the source said.

Inflation eased below the RBI's 4% target in February and March and is seen holding around target in 2025-26.

However, most analysts and sources believe that the government will also need to implement fiscal measures to support the economy if the outlook remains uncertain.

The sources declined to be named as they are not authorised to speak to the media.

"Fiscal side is still overall neutral, so RBI's accommodative approach will help reduce the downside to growth. The fiscal side push is also essential if one has to help boost growth, right now it is only the RBI which is doing the heavy lifting," IDFC FIRST's Sen Gupta said.

($1 = 85.4175 Indian rupees)

(Reporting by Swati Bhat and Siddhi Nayak; Editing by Jacqueline Wong)

(([email protected]; x.com/swatibhat22;))

MUMBAI, April 23 (Reuters) - India's HDB Financial Services has accepted bids worth 16.25 billion rupees ($190 million), for multiple maturity bonds, three bankers said on Wednesday.

The non-banking finance company will issue bonds maturing in five years and 13 days and in four years, and reissue September 2027 bonds, the bankers said. It had invited bids for all the options earlier in the day.

HDB Financial Services did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on April 23:

* Size includes base plus greenshoe for some issues

($1 = 85.4110 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)

(([email protected]))

MUMBAI, April 22 (Reuters) - India's HDB Financial Services plans to raise 28 billion rupees ($329.1 million), which includes a greenshoe option of 20.50 billion rupees, through a sale of multiple maturity bonds, three bankers said on Tuesday.

The non-banking finance company will issue bonds maturing in five years and 13 days and in four years, while it will reissue September 2027 bonds, the bankers said, adding that it has invited bids for all the options on Tuesday.

HDB Financial Services did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on April 22:

*Size includes base plus greenshoe for some issues

($1 = 85.0830 Indian rupees)

(Reporting by Dharamraj Dhutia
Editing by Eileen Soreng)

(([email protected]))

April 21 (Reuters) - India's top private lenders ICICI Bank ICBK.NS and HDFC Bank HDBK.NS rose nearly 2% each to hit record highs on Monday, after their fourth-quarter results inspired confidence in the companies' ability to deliver strong loan growth and maintain healthy asset quality.

Both lenders reported quarterly results above analyst estimates on Saturday, driven by sustained loan growth and improving asset quality.

The two banks are Jefferies' top picks in the sector, with analysts highlighting their ability to expand lending margins while maintaining credit costs.

($1 = 85.1420 Indian rupees)

(Reporting by Kashish Tandon and Ashish Chandra in Bengaluru; Editing by Janane Venkatraman)

(([email protected]; +91 7982114624;))

Recasts with comments from management

By Siddhi Nayak

MUMBAI, April 19 (Reuters) - HDFC Bank HDBK.NS, India's largest private lender, aims to bring its loan-to-deposit ratio (LDR) back down to its pre-merger levels of 85%-90% in 2026-27, its chief financial officer said on Saturday.

HDFC's LDR has been elevated but declining since its merger with parent Housing Development Finance Corporation, which completed on July 1, 2023. LDR was at 96.5% at the end of March, down from 104% a year earlier, CFO Srinivasan Vaidyanathan said in post-earnings call.

The merger added a large pool of loans to its portfolio but a much smaller amount of deposits, putting it under pressure to raise deposits or slow loan growth.

The Mumbai-based lender's gross advances, or loans sanctioned and disbursed, rose around 4% sequentially in the January-March quarter, while deposits rose 5.9% to 27.15 trillion rupees.

HDFC Bank expects its loan growth to be above that of the industry in 2026-27, Vaidyanathan reiterated, without divulging specific targets.

"The opportunity to grow in retail is higher than other segments," the CFO said, while highlighting "intense" pricing pressure in corporate loan segments.

Earlier in the day, HDFC Bank logged a standalone net profit of 176.16 billion rupees ($2.06 billion) for the financial fourth quarter, up from 167.36 billion rupees in the previous three months and sharply above analysts' estimate of 170.27 billion rupees, according to data compiled by LSEG.

Net interest income, the difference between interest earned and paid, rose 4.6% to 320.7 billion rupees, core net interest margin rose to 3.54% from 3.43% on total assets, and to 3.73% from 3.62% on interest-earning assets.

Excluding interest on an income tax refund worth 117 billion rupees, HDFC's core net interest margin was 3.46% on total assets and 3.65% on interest-earning assets.

HDFC Bank's asset quality improved, with its gross non-performing assets ratio falling to at 1.33% at the end of March from 1.42% three months earlier.

($1 = 85.4290 Indian rupees)

(Reporting by Siddhi Nayak
Editing by William Mallard and Peter Graff)

(([email protected]; x.com/siddhiVnayak;))

** India's financials .NIFTYFIN rise 1.3% to hit lifetime high of 25,811.25; on course for fourth straight session of gains

** HDFC Bank HDBK.NS and ICICI Bank ICBK.NS, up 1% and 2.3% respectively to record highs ahead of quarterly results due in the weekend

** Gains driven by expectations of NIM improvement after savings rate cut, stable asset quality, and prospects of an RBI rate cut, analysts say

** FPIs showing signs of return after intense selling since late-September also aiding bank stocks

** Financials offer more structural and long term growth visibility compared to export-driven sectors amid global tariff turmoil - Vinay Paharia, chief investment officer at PGIM Mutual Fund

** CASA growth will be key to credit growth and stock price moves of large banks, while total deposit growth will be more important for mid- and small-sized banks - JP Morgan

** YTD, financials up 9.4% vs 0.3% drop in benchmark Nifty 50 .NSEI

(Reporting by Vivek Kumar M)

(([email protected];))

• HDFC Bank Ltd HDB.N, HDB is expected to report resultson April 18 (estimated) for the period ending September 30 2024

• 
  

• ​LSEG's mean analyst estimate for HDFC Bank Ltd is for earnings of 53 cents per share.

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy," no "hold" and no "sell" or "strong sell."

• The mean earnings estimate of analysts was unchanged in the last three months. ​

• Wall Street's median 12-month price target for HDFC Bank Ltd is $75.90​, above​ its last closing price of $69.41. ​​​

This summary was machine generated April 16 at 11:01 GMT. All figures in US dollars unless otherwise stated. (For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact [email protected])

Corrects time stamp in second paragraph

April 15 (Reuters) - Shares of India's HDFC Bank HDBK.NS rose as much as 4% on Tuesday to 1,876.80 rupees and were set for their best day in 10 months, after its deposit rate cuts were seen as a margin boost amid slowing loan growth in the industry.

India's largest private lender rose to 1,876.80 rupees as of 8:53 a.m. GMT, its highest since early December, after the bank cut savings deposit rates by 25 basis points across tiers - its first cut in the under-5-million-rupee ($58,263) category in five years.

Brokerage Macquarie said the rate cut could boost HDFC Bank's margins by five basis points starting the first quarter of fiscal 2026, while Jefferies estimated it would reduce costs on 23% of its deposits.

"HDFC Bank already had room to cut... We expect more banks to cut savings deposit rates in coming quarters," Macquarie analyst Suresh Ganapathy said.

Jefferies added that private banks may cut rates faster compared to state-run lenders. Nifty private bank index .NIFPVTBNK has added nearly 3% on the day, in its best session since early June.

($1 = 85.8175 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Nivedita Bhattacharjee)

(([email protected]; X: @MukherjeeHritam;))

MUMBAI, April 9 (Reuters) - India's HDB Financial Services has accepted bids worth 11 billion rupees ($127 million) for the sale of multiple tenor bonds, three bankers said on Wednesday.

The non-banking finance company will reissue September 2027 bonds at a yield of 7.6184%, and do a fresh issue of bonds maturing in three years and one month at 7.65% coupon, according to the bankers.

HDB Financial Services did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on April 9:

*Size includes base plus greenshoe for some issues

($1 = 86.6170 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)

(([email protected]))

MUMBAI, April 8 (Reuters) - India's HDB Financial Services plans to raise 20 billion rupees (nearly $233 million), including a greenshoe option of 9 billion rupees, through the sale of multiple tenor bonds, three bankers said on Tuesday.

The non-banking finance company will reissue September 2027 bonds and do a fresh issue of bonds maturing in three years and one month, according to the bankers.

HDB Financial Services did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on April 8:

*Size includes base plus greenshoe for some issues

($1 = 85.8940 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)

(([email protected]))

** Shares of India's HDFC Bank HDBK.NS climb 2.1% to 1,832.25 rupees, top boost to benchmark Nifty 50 index .NSEI, which is down 0.6%

** India's top private lender by assets says its Q4 deposits grew 5.9% vs a 2.5% growth in Q3; gross advances, or loans sanctioned and disbursed, climbed 4%

** HDBK merged with parent HDFC in July 2023, adding a large pool of loans but a much smaller volume of deposits, putting the lender under pressure to either raise more deposits or scale back loan growth

** Loan mix improvement could mean another quarter of stable net interest margin and profitability, says Bernstein

** Bank is continuing on its path to to normalise loan-to-deposit ratio while maintaining stable margins - Bernstein

** Jefferies analysts say while growth appears modest, it is the first improvement after four quarters and could move towards 11% by March 2026

** Stock gains 3% YTD vs a 2.3% decline in benchmark Nifty

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

April 3 (Reuters) - HDFC Bank HDBK.NS, India's biggest private lender by assets, said on Thursday its growth in deposits outpaced that of loans in the three months to March 31, compared with the preceding quarter.

Deposits rose 5.9% to 27.15 trillion rupees ($318.5 billion), the Mumbai-based bank said, higher than the 2.5% rise in the October-December quarter.

Its low-cost current and savings account deposits rose 8.2%.

Gross advances, or loans sanctioned and disbursed, rose 4% to 26.44 trillion rupees, faster than the 0.9% sequential growth in the previous quarter.

HDFC Bank merged with its parent HDFC in July 2023, adding a large pool of loans to its portfolio but a much smaller volume of deposits. That has put the lender under pressure to either raise more deposits or scale back loan growth.

Overall loan growth for Indian banks moderated for an eighth straight month in February due to a drop in personal and credit card loans following tighter rules by the Reserve Bank of India.

In the March quarter, HDFC Bank securitised 107 billion rupees of loans, it said.

The bank aims to grow its loan book in line with the industry in 2025-26, while pushing for faster deposit growth, Chief Financial Officer Srinivasan Vaidyanathan had said in January.

($1 = 85.2470 Indian rupees)

(Reporting by Siddhi Nayak and Nishit Navin; Editing by Maju Samuel)

(([email protected]; x.com/siddhiVnayak;))

April 2 (Reuters) - HDFC Bank Ltd HDBK.NS:

• HDFC BANK LTD - SEBI ISSUES ADMINISTRATIVE WARNING LETTER TO HDFC BANK

Source text: ID:nBSE6ccBXJ

Further company coverage: HDBK.NS

(([email protected];))

By Bharath Rajeswaran

March 28 (Reuters) - Shares of India's financial services sector companies recovered in March, leading the benchmark Nifty 50 index's comeback from a historic downturn and setting the stage for a robust fiscal year 2026.

With the Reserve Bank of India's interest rate cuts looming, credit growth surging, and foreign inflows returning, financials are once again the market's hottest bet.

Potential rate cuts and liquidity injection by the central bank are likely to improve the overall credit and deposit environment and earnings for banks in FY2026, Anand Rathi Research's analyst Kaitav Shah said.

Financials .NIFTYFIN, accounting for 37% weight in the Nifty 50 .NSEI, jumped about 9% in March after three straight monthly losses. It helped the NSE benchmark index reverse losses in the fiscal year, after about $1 trillion in investor wealth was wiped out during a downturn in the second half. The Nifty 50 had touched a record high in September.

In FY2025, financials gained nearly 20% and banks .NSEBANK rose 9%, outperforming the Nifty 50's 5% rise.

The sector has also benefited from foreign inflows returning in March after sustained selling.

Still, foreign portfolio investors (FPIs) have offloaded Indian shares worth a record $26 billion since October, marking the highest outflows in a six-month period, pushing benchmark indexes into a correction territory in November and the broader markets into a bear market last month.

BANKING AND FINANCE GAINS TO CONTINUE

For FY2026, the banking sector is expected to remain strong, with projected credit growth of 12-13% on strong services and retail demand.

"Since banking is the ideal proxy to economic growth, it should see better credit and deposit growth in FY2026," said Mayuresh Joshi of financial services firm William O'Neil and Company.

BNP Paribas analyst Santanu Chakrabarti echoed Joshi's sentiment. "Besides liquidity infusion, changes in non-bank lenders' risk weights, relaxed priority sector lending norms, and reduced foreign selling pressure keep our bullish FY2026 outlook intact."

The RBI is widely expected to cut rates by 25 basis points in April and again in August, easing funding costs and supporting credit expansion.

Despite FPIs selling financial stocks worth $6.7 billion in FY2025, roughly 41% of total outflows, the sector ended the year higher on attractive valuations.

The Nifty financial services index trades at a 12-month forward price-to-earnings (P/E) ratio of 20x, below the 10-month average of 20.6x, suggesting undervaluation which could lead to further investments.

($1 = 85.5850 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich)

(([email protected]; +91 9769003463;))

MUMBAI, March 26 (Reuters) - India's HDB Financial Services plans to raise 10 billion rupees ($116.47 million), including a greenshoe option of 7 billion rupees through the sale of multiple tenor bonds, three bankers said on Wednesday.

The non-banking finance company will issue bonds with maturities of two years as well as two years and eight months, according to the bankers.

HDB Financial Services did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on March 26:

* Size includes base plus greenshoe for some issues

($1 = 85.8575 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)

(([email protected]))