HDFC Bank Share Price
Friday, April 5, saw purchasing interest in HDFC Bank shares as a result of the private lender’s March quarter business updates. After a quiet performance, the stock has recently started rising.
Following the private lender’s March quarter business updates, which revealed remarkable increase in deposits and a decrease in the loan-to-deposit ratio, purchasing activity in HDFC Bank shares persisted on Friday, April 5. HDFC Bank’s share price increased for the seventh straight session, opening at ₹1,543, up around 1% from its previous finish of ₹1,527.90 .
Following the release of HDFC Bank’s Q4 business report, a number of leading brokerage companies highlighted the bank’s better-than-expected deposit growth during the March quarter and stated their positive opinions on the company.
According to CNBC-TV18, Macquarie kept its ‘outperform’ rating on the stock with a ₹2,000 target price and stated that the bank’s Q4 updates demonstrated the effectiveness of its consolidation strategy. According to Macquarie, while deposit growth is a welcome surprise, the fall in corporate loan growth and the LDR (loan-to-deposit ratio) are great results. According to CNBC-TV18, Macquarie thinks the company is worth adding to because it is now trading at an acceptable price.
With a target price of ₹1,750, HSBC kept its buy call on the company, noting that HDFC Bank’s Q4 deposit performance exceeded Street estimates while a slowdown in loan growth and a decrease in LDR were in line with forecasts. According to CNBC-TV18, Morgan Stanley kept an overweight position in the company, with a target price of ₹1,900.
After a quiet year, the share price of HDFC Bank has recently seen some respectable advances. In FY24, the stock experienced a 10% fall, but the Sensex, the market benchmark, saw a 25% increase.
In the meantime, on April 20, the bank will make public its financial results for the fourth quarter of FY24. To ratify HDFC Bank’s Q4 results, the private lender’s board of directors will convene on Saturday, April 20.
HDFC Bank’s Q4 financial report
The largest private lender in India stated in an exchange filing on Thursday, April 4, that its gross advances in Q4FY24 increased to over ₹25,08,000 crore, or 55.4% YoY and 1.6% QoQ.
The bank’s domestic retail loan portfolio increased by around 108.9% year over year and 3.7% quarter over quarter, but its commercial and rural
Approximately 24.6% YoY and 4.2% QoQ growth was seen in banking loans, according to the lender’s exchange filing.
With the exception of non-individual loans from the former HDFC Limited, its corporate and other wholesale loans increased by roughly 4.1% year over year but decreased by 2.2% quarter over quarter.
Furthermore, as of March 31, 2024, the deposits amount reached at ₹23,80,000 crore, representing an increase of around 26.4% YoY and 7.5% QoQ. YoY and QoQ growth rates for retail deposits were around 27.8% and 6.9%, respectively. According to HDFC Bank, wholesale deposits increased by roughly 10.9% quarter over quarter and 19.4% year over year.
As of March 31, 2024, the total amount of CASA deposits held by the bank was around ₹9,09,000 crore, representing an increase of approximately 8.7% YoY and 8.8% QoQ. Retail CASA increased by 6.3% QoQ and about 8.8% YoY. The CASA ratio of the bank.
According to HDFC Bank’s exchange report, stood at about 38.2 percent as of March 31, 2024, down from 44.4 percent as of March 31, 2023, and 37.7 percent as of December 31, 2023.
Furthermore, the lender announced after market hours on Thursday, April 4, in a separate exchange filing that it had sold roughly 3% of Indraprastha Medical Corporation through the NSE secondary market channel for a cash consideration of ₹55.46 crore. Following the disposal of its stock, HDFC Bank currently owns 2.45% of Indraprastha.
“We wish to inform you that out of 50,31,897 equity shares of ₹10 each held by HDFC Bank as of February 28, 2024, in Indraprastha Medical Corporation Limited, the bank has sold 27,81,897 shares (representing 3.03 per cent of the share capital of Indraprastha),” stated HDFC Bank.
In Q4, FII ownership falls
In the meantime, the HDFC Bank shareholding data as of the end of March 2024 also revealed a drop in foreign institutional investors’ (FII) ownership during that quarter.
As of the March 2024 quarter, FII ownership of HDFC Bank was 47.83 percent, a decrease from 52.39 percent in the December 2023 quarter.
Due to the lower FII stakes in HDFC Bank and the need to meet the weightage requirements in the MSCI index, there are expectations that new foreign investors will balance the gap and provide fresh investment.
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