HDFC Bank Share: HDFC Bank shares fell by more than 4 percent shortly after the market opened on Friday. Due to the huge fall in the shares, the market cap of HDFC Bank decreased by Rs 53,000 crore.
After the rise of the last few days, a sharp decline is being seen in the stock market today. While Nifty fell by more than 100 points, Sensex saw a decline of more than 400 points. Bank Nifty has seen the maximum decline of 1.42 percent. Meanwhile, HDFC Bank shares have caused a huge loss to investors.
Loss of Rs 53000 crore!
HDFC Bank shares fell by more than 4 percent shortly after the market opened on Friday. Due to the huge fall in the shares, the market cap of HDFC Bank decreased by Rs 53,000 crore. This means that the valuation of HDFC Bank investors has decreased by Rs 53000 crore. Currently, the market cap of the big private sector bank is Rs 13.13 lakh crore. At the time of writing the news, HDFC Bank shares were trading at Rs 1655, down 4.16 percent.
Why such a huge fall in HDFC Bank’s stock?
The sharp fall in the shares of the country’s largest bank came after the lender gave the June quarter business update on loans and advances, deposit growth. Before the June quarter results, the bank has released an update, according to which loan distribution and deposit growth for HDFC Bank have generally been low. Nomura India has said in its update note that the bank’s loans and deposits have grown by 1 to 3 percent in the last three years.
Decline in bank loan distribution
Following the update of Q1 FY25, HDFC Bank shares fell 4.19 per cent to hit a low of Rs 1,654.25 on the BSE. HDFC Bank has posted a year-on-year or flat growth of 11 per cent in its gross asset under management (AUM) on a pro-forma basis. After loan sales, gross debt declined by 0.8 per cent, while year-on-year growth stood at 10.8 per cent.
Nomura India has suggested a target price of Rs 1,660 on the stock and said “HDFC Bank’s loan and deposit growth (on a pro-forma basis) is lower than our FY25F estimates of 12 per cent and 17 per cent, respectively. HDFCB’s
