HDFC Bank shares were down for the fifth day in six preceding sessions on Monday, but the private lender outperformed the broader banking index, which traded with over 1.3 per cent cuts.
Global investment bank Credit Suisse has retained its "outperform" call on HDFC Bank with a target of Rs 770. The management is confident of over 20 per cent loan growth, the brokerage said.
Any weakness is a good opportunity to accumulate, the brokerage said, adding that HDFC Bank is the best placed stock among peers.
HDFC Bank trades at 18-times its price earnings, which is at a 10 per cent discount to its historical valuations, Credit Suisse said.
HDFC Bank shares were down 0.16 per cent at Rs 637.75 as of 11.25 a.m. The stock has fallen over 3 per cent last week against a 1.8 per cent fall in the broader Sensex.
Private banking firms have been under selling pressure following an investigation by the online magazine Cobrapost, which on Thursday showed video footage of the lenders' branch employees suggesting to an undercover reporter methods to launder money.
The finance ministry and the RBI are investigating allegations of money laundering practices at top private sector lenders ICICI Bank, HDFC Bank and Axis Bank.
HDFC Bank has appointed independent auditor Deloitte and law firm M/s Amarchand & Mangaldas & Suresh A Shroff & Co to examine allegations of money laundering by Cobrapost. (Read full story)
Credit Suisse said the internal probe being done by the Bank is robust enough to capture any such systemic activity.