HDFC Bank falls as Rs 720-crore worth of shares change hands, drags Nifty Bank down

HDFC Bank shares were trading lower on October 13 morning after 46.7 lakh shares, or 0.1 percent stake, worth Rs 720 crore changed hands at Rs 1,540 apiece. The fall in the stock contributed to a drop in the 12-pack Nifty Bank, which was down 313 points or 0.70 percent.

The details of the sellers and buyers were not immediately known.

HDFC Bank stock is in the spotlight as India’s biggest private lender announces its Q2 earnings on October 15. Sequentially, all private banks other than HDFC are expected to see their net interest income (NII) and profit after tax to grow around 1 to 4 percent in the September quarter, ICICI Securities has said in the report.

Domestic brokerage firm Motilal Oswal expects HDFC Bank to report a net profit of Rs 14,781.1 crore, up 39.4 percent from the year-ago quarter. Net interest income (NII) is expected to increase by 33.6 percent to Rs 28,089.4 crore. Lender’s pre-provision operating profit (PPOP) is likely to rise by 31 percent year-on-year (YoY) to Rs 22,788 crore.

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In a business update, HDFC Bank reported 57.7 percent YoY growth in its gross advances in the September quarter, while deposits grew about 30 percent. Its gross advances aggregated to approximately Rs 23,54,500 crore as of September-end, a growth of 57.7 percent on a YoY basis.

HDFC Bank, which has lost 5 percent this year, has been one of the worst-performing banking stocks of 2023.

While largecap bank stocks have largely underperformed midcap and smallcap peers, recent updates by Dalal Street’s most valued bank on the merged entity’s (HDFC Bank-HDFC) net worth, net interest margins (NIM) and return on assets (RoA) weighed on the lender’s stock.

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In its second quarter update, the private lender reported a strong loan and deposit growth but is likely to report a sequential drop in profit, according to analysts. HDFC Bank’s Q2 NIM would be the key monitorable, Nuvama Institutional Equities has said.

At 10.18 am, the stock was trading at Rs 1,540 on the National Stock Exchange, down 0.64 percent from the previous close.

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