Shares of HDFC Bank lost 4 percent on Monday after the firm's March quarter profit missed analysts' estimates. India's largest private lender reported a net profit of Rs 8,186.3 crore in Q4, up 18 percent on a YoY basis. However, it remained below the CNBC-TV18 estimate of Rs 8,443 crore.

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The stock fell as much as 3.9 percent to its day's low of Rs 1,372.65 per share on the BSE.

Its net interest income (NII) rose 12 percent YoY to Rs 17,120.2 crores, as compared to Rs 15,204 crore in the year-ago period. Meanwhile, its contingency provisions dropped 32 percent as compared to the previous quarter. They are currently at Rs 5,861 crore. The bank's board has decided against giving out a dividend for FY21, given the second wave of COVID-19.

Brokerages remained bullish on the lender even as profit missed analysts' estimates. Morgan Stanley and JPMorgan are 'overweight' while CLSA has a 'buy' call.

As per Morgan Stanley, COVID resurgence poses near-term uncertainty for the lender. It further expects sustained market share gains and a further rise in profitability as the cycle turns and did not change earnings estimates for the bank.

Credit Suisse, on the other hand, raised FY22/23 earnings by 4 percent/1 percent on slightly lower credit costs. Growth and profitability remain ahead of peers, added the global brokerage.

JPMorgan noted that the core performance remains robust and expects EPS growth at 10 percent over FY20-23.

CLSA said, "the bank delivered very strong asset quality during the first wave but growth outcomes in the near term will need to be watched given corporate deleveraging and slower unsecured growth. Limited visibility on the lifting of the RBI ban can be a near-term constraint on multiples."

(Edited by : Ajay Vaishnav)