HDFC Bank shares halt 5-day winning run, slip 3% post Q1 updates

Shares of HDFC Bank fell sharply in Wednesday's trade, pausing their five-day upward march. The stock today fell 3.48 per cent to hit a day low of Rs 1,668.50 over its previous close of Rs 1,728.65. Around 4.19 lakh shares changed hands today, which was lower than the two-week average volume of 6.94 lakh shares. Turnover on the counter stood at Rs 70.49 crore, commanding a market capitalisation (m-cap) of Rs 9,36,961.81 crore.

At today's low price of Rs 1,668.50, the stock traded 5.08 per cent down from its 52-week high of Rs 1,757.80, a level seen on July 3. That said, it has gained 24.67 per cent from its one-year low of Rs 1,338.30, hit on July 19 last year.

On technical setup, the counter's 14-day relative strength index (RSI) came at 56.52. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 21.87. It has a price-to-book (P/B) value of 3.44. The scrip has a one-year beta of 1.15, indicating high volatility.

HDFC Bank, in a pre-market BSE filing, said its advances aggregated to approximately Rs 16,15,500 crore in the June quarter (Q1 FY24), up 15.8 per cent over Rs 13,95,100 crore in the same quarter last year. This translated to a 0.90 per cent sequential growth in advances over Rs 16,00,600 crore in the March quarter (Q4 FY23).

Gross of transfers through inter-bank participation certificates and bills rediscounted, the lender's advances grew 20.20 per cent, year-on-year (YoY), and around 1.9 per cent, quarter-on-quarter (QoQ), HDFC Bank stated.

Domestic retail loans grew 20 per cent YoY and 4 per cent QoQ, as per the bank's internal business classification. Commercial and rural banking loans grew 29 per cent (YoY) or 2 per cent (QoQ), while corporate and other wholesale loans grew 11 per cent, YoY, but fell 1 per cent, QoQ.

HDFC Bank said its deposits aggregated to Rs 19,13,000 crore as on June 30, up 19.20 per cent over Rs 16,04,800 crore as on June 30 last year. Deposits were up 1.60 per cent over Rs 18,83,400 crore as on March 31, 2023.

Retail deposits jumped by Rs 38,000 crore during the June 2023 quarter and were up 21.50 per cent, YoY, or 2.5 per cent, QoQ. Wholesale deposits grew 9 per cent YoY but were down 2.5 per cent QoQ.

HDFC Bank's CASA deposits aggregated to Rs 8,13,000 crore as on June 30, 2023, a growth of 10.70 per cent over Rs 7,34,600 crore as on June 30, 2022. CASA deposits were down 2.70 per cent over Rs 8,36,000 crore at the end of March this year.

During Q1 FY24, the bank purchased loans aggregating Rs 11,632 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation Ltd, HDFC Bank said.

For the unversed, HDFC's merger with HDFC Bank got effective from July 1. HDFC shares cease to trade from July 13 due to the mega merger. The stock also fell today and it was last seen trading 2.88 per cent lower at Rs 2,797.95.

Meanwhile, Indian equity benchmarks traded lower in afternoon deals amid weak global cues. Asian markets slipped on concerns over a faltering economic recovery in China and worries of a trade conflict between Washington and Beijing.

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