HDFC Bank Shares Slip 7 Per Cent After Q3 Results; Mcap Erodes By Rs 72,736 Crore

At 1.30 pm, HDFC Bank shares were trading at Rs 1,562.00 apiece, down 6.97 per cent, on the BSE on Wednesday

On Tuesday, HDFC Bank logged a 34 per cent rise in its standalone net profit to Rs 16,373 crore for Q3 ended December 2023.

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Shares of India's largest private lender, HDFC Bank, dropped 7 per cent on Wednesday after its December quarter (Q3) earnings failed to impress investors. In early tradee, the stock tanked 6.48 per cent to Rs 1,570 on the BSE, while it sank 7 per cent to Rs 1,560 on the NSE.

At 1.30 pm, HDFC Bank shares were trading at Rs 1,562.00 apiece, down 6.97 per cent, on the BSE on Wednesday.

HDFC Bank's market capitalisation (Mcap) also eroded by Rs 72,736 crore to Rs 12,02,004.22 crore in early trade. The bank's stock has turned out to be the biggest laggard among the Sensex and Nifty firms.

On Tuesday, HDFC Bank logged a 34 per cent rise in its standalone net profit to Rs 16,373 crore for the third quarter (Q3) ended December 2023. In the corresponding quarter of the previous fiscal year, the bank had earned a net profit of Rs 12,259 crore . The largest private sector lender, which merged mortgage lender parent HDFC into itself in July, reported a net profit of Rs 16,372 crore against Rs 15,976 crore in the quarter-ago period on a standalone basis.

the bank's total income on a standalone basis rose to Rs 81,720 crore in the October-December quarter of FY24 against Rs 51,208 crore in the year-ago period, HDFC Bank said in a regulatory filing. On a consolidated basis, the bank's profit increased 39 per cent to Rs 17,718 crore from Rs 12,735 crore. The consolidated total income rose to Rs 1,15,015 crore from Rs 54,123 crore at the end of the same quarter the previous year.

"HDFC Bank reported a mixed quarter," according to a report by Motilal Oswal Research. Its core net interest income grew to Rs 28,470 crore during the quarter, while the other income stood at Rs 11,140 crore, according to exchange filings. On the asset quality front, it registered an improvement in the gross non-performing assets ratio at 1.26 per cent against 1.34 per cent in the quarter-ago period.