HDFC Bank stock went lower by 3% to ₹1,475 on the BSE
Shares of HDFC Bank dipped over 3% on July 19 as the company’s June quarter earnings failed to enthuse investors.
The stock went lower by 3% to ₹1,475 on the BSE.
At the NSE, it dipped 3.17% to ₹1,474.
HDFC Bank’s consolidated net profit for the June quarter increased 14% to ₹7,922 crore, but the largest private sector lender reported reverses because of the second wave of the pandemic which compressed its growth.
When compared with the preceding March quarter’s ₹8,434 crore, there was a decline in the consolidated profit. On a standalone basis, the bank reported a post-tax profit of ₹7,730 crore as against ₹6,659 crore in the year-ago period and ₹8,187 crore in the January-March period.
Its core net interest income grew 8.57% to ₹17,009 crore on advances growth of 14.4% and the net interest margin coming at 4.1%, while the other income grew 54.3% to ₹4,075 crore.
It can be noted that the year-ago quarter had a deep impact of the national lockdown and the ensuing impact in economic activity, whereas the reporting quarter had an impact due to localised lockdowns.
“These disruptions led to a decrease in retail loan originations, sale of third party products, card spends and efficiency in collection efforts. The lower business volumes, coupled with higher slippages, resulted in lower revenues, as well as an enhanced level of provisioning,” the bank said in a statement.
“HDFC Bank reported lower-than-expected Q1 FY22 PAT of ₹77.3 bn owing to greater-than-anticipated impact of the second COVID wave — from both lower disbursements and softer collections,” according to a note by Edelweiss Research.
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