During Thursday’s trading session, the shares of India’s largest private sector bank surged 0.2 percent to Rs. 1,782.75 on BSE, after UBS Principal Capital Asia Limited bought shares worth nearly Rs. 543 crores in the company via a block deal on BSE.
With a market capitalisation of Rs. 13.5 lakh crores, the shares of HDFC Bank Limited opened at Rs. 1,778.8, compared to its previous closing price of Rs. 1,778.85.
What’s the News:
According to the 25th September block deal available with the BSE, UBS Principal Capital Asia Limited bought nearly 30.72 lakh equity shares in HDFC Bank through an open market transaction for Rs. 543.27 crores, at an average price of Rs. 1,768.05 per share.
However, on the seller side, BNP Paribas Financial Markets offloaded the same number of shares at the same average price.
Target on the Bank:
On Thursday, the global brokerage firm Macquarie reaffirmed its “outperform” recommendation for the HDFC Bank, setting a price target of Rs. 1,900. The brokerage believes that the bank may experience its loan growth for Q2 FY25 dropping below the 10 percent mark on a year-on-year basis.
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This slowdown may be attributed to the base effect and the substantial sell-down of loan assets valued at Rs. 60,000 to Rs. 70,000 crore that the bank is reportedly planning during the quarter.
Additionally, HDFC Bank may experience pressure to lower its Loan-to-Deposit ratio (LDR) and concentrate on margins, according to Macquarie.
The brokerage anticipates that the Net Interest Margin (NIM) of HDFC Bank will further improve by 5 bps sequentially in Q1 FY25, reaching 3.52 percent. In contrast, other banks may report either flat or declining margins.
Financials:
The company experienced significant growth in its net interest income (NII), showing a year-on-year rise of around 46.6 percent from Rs. 25,213 crores in Q1 FY24 to Rs. 36,966 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 12,403 crores to Rs. 17,188 crores, indicating a growth of nearly 38.6 percent.
Stock Performance
The stock has delivered positive returns of nearly 15.8 percent of returns in one year, as well as around 24.8 percent returns in the last six months. So far in 2024, the shares of HDFC Bank have given positive returns of about 4.7 percent.
About the Company:
HDFC Bank Limited is a publicly held banking company engaged in the business of providing a range of banking and financial services including retail banking, wholesale banking and treasury operations.
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Written by Shivani Singh
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