Shares of HDFC Bank witnessed a sharp decline of over 5 percent on January 17, reflecting a substantial setback driven by a 7 percent plunge in the US-listed ADRs overnight. The bank’s Q3FY24 results, though meeting headline expectations, left investors dissatisfied upon closer inspection.
HDFC Bank, India’s largest private sector bank, reported a 33 percent YoY increase in net profit to Rs 16,372 crore for the third quarter, largely aligning with projections. However, this positive figure included a one-time tax rate gain. Net interest income (NII) grew by 24 percent on-year to Rs 28,470 crore, falling short of street estimates. Meanwhile, provisions surged by a significant 50 percent to Rs 4,216 crore.
On January 16, HDFC Bank shares closed marginally higher at Rs 1,678 each, just before the Q3 results were unveiled. This performance contrasted with a 0.2 percent fall in the benchmark Sensex. However, post-Q3 results, the HDFC Bank ADR experienced a notable downturn, plummeting 6.7 percent on the NYSE to $61 – marking the most substantial single-day drop since April 2022.
As of 9:57 am the shares were trading 5.69% lower at ₹1,583.65
