HDFC Bank Limited

The Sensex experienced a major crash, dropping over 1,600 points, influenced heavily by HDFC Bank’s worse-than-expected Q3 results, which saw its stock plunge by around 7.5% to 8.5%. Additionally, a broader decline in global markets, spurred by reduced optimism for rate cuts and weaker GDP data from China, contributed to the downturn. Geopolitical tensions, particularly related to Iran-backed Houthi rebels, also added to the risk-averse sentiment in the markets. This combination of factors led to a sharp sell-off, reflecting the market’s sensitivity to both domestic financial performance and international economic and political developments.

HDFC Bank, India’s largest private lender, has reported a significant surge in its third-quarter profits for FY2024. The bank’s standalone net profit reached 163.73 billion rupees ($1.97 billion), surpassing analysts’ expectations of 156.51 billion rupees and showing an increase from the previous quarter’s 159.76 billion rupees. This performance was underpinned by robust loan growth and a strong demand for credit, particularly during the festive season. While the bank’s net interest income (NII) saw a quarter-over-quarter increase to 284.71 billion rupees, it slightly missed the estimated 286.47 billion rupees. The core net interest margin (NIM) stood at 3.4% on total assets and 3.6% on interest-earning assets. Additionally, HDFC Bank reported a sequential rise of 4.8% in gross loans and a 1.9% increase in deposits, maintaining a steady gross bad loans figure at 1.26% of assets. The bank’s stock price closed at 1,679.15 rupees per share on January 16, 2024, reflecting the positive market response to its robust financial performance.