HDFC Bank's net profit grew by one-fifth in the July-September period compared with the corresponding period a year ago. Its net interest income — or the difference between interest earned and interest paid — rose 18.9 percent to Rs 21,021.16 crore. Both profit and NII were 1-2 percent above estimates laid out by analysts in a CNBC-TV18 poll.

HDFC Bank's management said the lender will have 500 new branches over the next few months. CFO Srinivas Vaidyanathan said there's improvement in the wager economic situation in rural parts of the country. The bank has a rural business reach spear across 1.42 lakh villages as against a target of two lakh, he said on a conference call.

The HDFC Bank CFO also said the lender has acquired two million customers per quarter over the past few quarters. The bank offers wealth management services in 502 locations, and plans to raise its market share in the area, he said.

Nomura continued with a 'buy' call on the stock with a target price of Rs 1,690 — implying an upside of more than 17 percent from Friday's closing price. The brokerage raised its earnings per share estimates for the lender for years ending March 2023 and March 2025 but lowered the projection by 80 bps for the year ending March 2024.

HDFC Bank is well capitalised and remains among the fastest growing lenders in the country, according to Credit Suisse.

CLSA said the lender continues to delivery best-in-class loan growth, and raised its estimates for the years ending March 2024 and March 2025 by up to two percent. The brokerage expects a return of equity — a measure of profitability — of 17.5 percent for HDFC Bank in the two-year period.