Kolkata: HDFC Bank shares, the country’s largest private sector bank, continued to suffer a sharp erosion of value for the second day on Tuesday, July 21. Following disappointing margin performance in its quarterly results, its shares fell more than 7% in two days, wiping Rs 89,636 crore off its market valuation. On Tuesday, the shares closed at Rs 761.50, down 2.07% or Rs 16.10. The 52-week high and low levels for the stock are Rs 1,020.50 and Rs 726.65 respectively. The market cap of HDFC Bank stood at Rs 5.83 lakh crore after yesterday’s session.
Shares of HDFC Bank fell over 5% on Monday. The blue-chip stock has declined 7.10% in two days, eroding Rs 89,635.73 crore from its market valuation. The stock is a prominent constituent of the Sensex 30 basket and its sharp dip dragged the market lower for the second consecutive day. The 30-share BSE Sensex fell 238.41 points, or 0.31%, to close at 77,470.11 while the broader 50-share NSE Nifty fell 50.80 points, or 0.21%, to close at 24,187.70.
According to market experts, what disappointed the investors was the Q1 results of HDFC Bank, or more specifically, the net interest margin (NIM) performance of the bank. Net interest margin or popularly referred to as NIM, is a crucial profitability parameter of a bank or FI that measures the difference between the interest income a bank generates from loans and the interest it pays out to depositors.
However, HDFC Bank reported a 5% increase in its standalone net profit to Rs 19,060 crore for the Q1FY27 period. This was a rise from the net profit figure of Rs 18,155 crore in the same period last year. In a regulatory filing HDFC Bank said that their total income in the April-June period declined to Rs 92,184 crore from Rs 99,200 crore in Q1FY26 period.
The bank’s interest income in Q1FY27 increased to Rs 79,363 crore from Rs 77,470 crore in the same quarter a year ago. But operating profit declined to Rs 28,169 crore, compared to Rs 35,734 crore in the same quarter a year ago.
HDFC Bank reported a 7% increase in net interest income that touched Rs 33,530 crore in the June quarter, compared to Rs 31,440 crore a year earlier. Net interest margin was 3.26% on total assets and 3% on interest-earning assets.
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Avijit Ghosal has been writing on topics of business, industry and investment for the past three decades. He also writes on the broad economy, infrastructure and issues in banking. He has worked for economic dailies such as the Business Standard, The Economic Times, business magazines such as Business Today, English broadsheet the Hindustan Times and Bengali daily Anandabazar Patrika before joining TV9 Network.