HDFC Bank Shares: Shares of HDFC Bank fell 6 per cent after third quarter results, lose Rs 77,000 crore m-cap


HDFC Bank Shares

HDFC Bank Shares price today: The BSE’s third most valuable stock fell 6.48 percent to Rs 1,570. HDFC Bank’s market capitalization fell to Rs 11,98,094.09 crore from Rs 12,74,740.22 crore on Tuesday.

Shares of HDFC Bank fell 6 per cent in Wednesday trade, shedding more than Rs 76,000 crore from its market capitalization after mixed results for the December quarter. HDFC Bank reported higher net interest income (NII) and trading profits, but not higher commissions and borrowing costs. Institutional Stocks Nuvama said the bank made a large emergency payment of rupees 1,200 crore to the AIF, although it was worth 5% more than its book value, citing some offset from a huge tax refund. Condition.

“We are cutting earnings by 5–6 per cent for FY25E–FY26E. While the cut in core earnings is higher at 8 per cent due to a 4 per cent cut in loan growth, it is partially offset by an upward revision of non-core items. The bank has exhausted its LCR, will need to lower its LDR and is running slower than guidance on deposit growth. In all, we are lowering the target to Rs 1,730 from Rs 1,770,” Nuvama said while downgrading the stock to ‘HOLD’.

HDFC Bank Shares

The third-ranked stock fell 6.48 percent to Rs 1,570 on the BSE. HDFC Bank’s market capitalization fell below Rs 12 lakh crore to Rs 11,98,094.09 crore from Rs 12,74,740.22 crore on Tuesday to nearly Rs 77,000 crore.

While Philip Capital said its performance was stable as it removed excess liquidity from its balance sheet, tight liquidity had created challenges for the the bank to mobilise deposit.

“The ask rate for deposit outstrip the current run rate, which may transpire into moderation in credit growth.

“Dwindling liquidity coverage and rising LDR will limit the balance sheet’s ability to protect margins,” he said while proposing a target of Rs 1,920 on the stock.

Motilal Oswal said the HDFC Bank margin stood largely flat, which was slightly below its expectations, even as the bank deployed excess liquidity and significantly drew down the LCR ratio.

“Loan growth was healthy, driven by retail growth and continued leadership from commercial and regional banks. Asset quality ratios improved as PCR increased to 75%. The bank has continued to maintain 0.6 per cent buffer of floating + contingent provisions, which provides additional comfort.” Management has indicated that NIM will improve gradually over the next few years, which along with improving operating leverage will enable the bank to deliver healthy return ratios,” it said while suggesting a target of Rs 1,950 on the stock.

InCred Equities said elevated cost of deposits and pressure on margins would be common issue for all banks in the coming quarters and that HDFC Bank is better placed due to its improved penetration providing portfolio granularity and command over loan pricing.

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