Fairwealth Securities has maintained its buy rating on HDFC Bank with a price target of Rs 2470 in its report dated January 19, 2011.

At the current price of Rs. 2109, the stock is trading at just 24.18x and 18.51x times of the projected FY11E & FY12E earning.

Presently, Housing Development Finance Corporation (HDFC) Bank has a branch network of over 1765 spread across 819 cities in the country.

The bank also has a network of about 4721 ATM's across the cities. The Bank continues to offer up exclusive products and services with customer centricity a main objective.

The financial recital in fiscal 2010 remained strong.

For the fiscal ended March 2010, HDFC Bank recorded total income of Rs 19980.5 crore. Net revenues of the bank for the financial year ended March 2010 remained at Rs 12194.2 crore, up by 13.8% as against Rs 10711.8 crore for the fiscal ended March 2009.

Net revenues remained at Rs 3487 crore for the three month period ended September 2010, up 15.9% as against Rs 3009.3 crore for the same quarter of the last year. HDFC Bank's core net interest margin for the year ended stood at around 4.3%.

Net interest income for the three month period ended September 2010 surged 29.2% to Rs 2526.3 crore, driven by the average assets growth of 30% and a stable NIM of 4.2%. HDFC Bank net profit for financial year ended March 2010 remained at Rs 2948.7 crore. Consolidated net profit of the bank surged 33.6% to Rs 3003.7 crore for the fiscal ended March 2010.

As on March 31, 2010, gross non performing assets of the bank remained at 1.43% of total advances as compared to 1.98% at the end of the previous year. The share of net non performing assets to net advances during the same period stood at 0.31%.

Portfolio quality as of Sep 2010 stayed robust with gross non-performing assets 1.2% of gross advances and net non non-performing assets at 0.3% of net advances.

As on March 2010, HDFC Bank's total balance sheet rose 21.4% to Rs 222459 crore as compared to Rs 183271 crore during March 31, 2009. Overall gross advances during March 2010 remained at Rs 127262 crore, up 27% as against March 2009.

HDFC Bank's total balance sheet size surged 28.9% to Rs 249983 crore during the three month period ended September 2010. Total Deposits remained at Rs 195321 crore, up by 30.4% over September 30, 2009.

HDFC bank deals in a highly automated environment in term of IT and communication system.

The bank's execution of RSA adaptive authentication, RSA fraud action service, and partaking in the RSA efraud network community helped boost customer confidence; speed up online banking trait and considerably diminishing phasing attack.