HDFC Bank’s share price fell over 2 percent in intraday trade on Wednesday, February 14, to hit a fresh 52-week low of ₹1,363.45 on the BSE. HDFC Bank’s share price opened at ₹1,380.90 against the previous close of ₹1,394 and broke more than 2 percent to the 52-week low level.
The stock has been under strong selling pressure this year. At the current market price of ₹1,363.45, HDFC Bank’s share price has declined by more than 20 percent in the calendar year 2024 to date. Most of this loss occurred after the lender’s December quarter earnings.
Also Read: HDFC Bank raises $300 million through youth sustainable finance bond
India’s largest private sector lender reported net profit growth of 33 percent year-on-year (YoY) to ₹16,372 crore in the third quarter of FY24. The bank’s net interest income (NII) in Q3FY24 rose 24 percent YoY to ₹28,470 crores.
The bank recorded loan growth of 4 percent QoQ while deposits grew 2 percent. Its Liquidity Cover Ratio (LCR) fell to 109.8 percent from 120 percent QoQ due to a fall in liquid assets to fund loan growth. The bank’s loan-to-deposit ratio (LDR) rose from 108.4 percent to 110.5 percent QoQ. The LDR for standalone HDFC Bank was 89 percent in Q3FY24 against 85 percent in Q1FY24.
Also Read: HDFC Bank Q3 Results: From HDB Financial IPO to distribution network – 5 important things to know from management call
Analysts believe the stock could be bullish at the current juncture in the long term.
Foram Chheda, CMT, and the founder of ChartAnalytics.co.in observed that after forming a top near ₹1,720 last year in December, HDFC Bank’s share price witnessed a steep corrective decline that took it to a new 52-week low today. This certainly highlights a very weak underlying trend.
However, Chheda added that the stock has now entered the oversold zone.
“Although there are no signs of confirmation yet, HDFC Bank seems to be in the process of forming a base for itself. Investors should not jump in immediately but the stock certainly qualifies for a rally at the current and any subsequent lower level,” Chheda said.
Meanwhile, the Reserve Bank of India (RBI) on February 5 approved HDFC Bank Group’s proposal to acquire an “aggregate holding” of up to 9.50 per cent in six banks including Axis Bank, Bandhan Bank, ICICI Bank, IndusInd Bank, Suryoday Small Finance Bank. , and Yes Bank.
Also Read: HDFC Bank Group gets RBI nod to buy up to 9.5% in Yes Bank, Axis Bank, 4 others
As Mint reported earlier, the approvals were issued following applications made by HDFC Bank (acting as promoter/sponsor of the Group) to RBI on December 18, 2023. The RBI’s approval is valid for one year from the date of the RBI’s letter, expiry on February 4, 2025.
HDFC Bank is required to ensure that the “aggregate holding” in the said banks does not exceed 9.50 per cent of the paid-up share capital or voting rights of the respective banks at any point of time.
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Published: 14 Feb 2024, 12:33 IST