HDFC Bank’s share price is in the spotlight as they leapt back into the green following the announcement of impressive Q2 results breaking the two-session losing streak. This was the private lender’s first quarterly results after the merger with HDFC earlier in the year.
The Investment: If your dad had invested ₹10,000 in HDFC Bank on October 17, 2013, when the shares were priced at ₹304.14 each, you could have purchased approximately 32 shares. Fast forward to October 17, 2023, those shares would now be worth ₹50,292.49, given the current trading price of ₹1,529.60 per share. That’s an increase of 402.92% over ten years!
Earnings Overview: In the July-September quarter, HDFC Bank reported net profits of ₹15,976 crore and a net interest income of ₹27,385 crore. The net interest margin stood at 3.4%. These robust figures come despite the bank’s merger with HDFC Ltd, which had a significant impact on its asset quality due to bad loans in the non-individual loan segment of the former HDFC Ltd. The gross non-performing assets (NPA) surged to ₹31,577.89 crore, a stark increase from the previous year.
Here is how analysts reacted to the company’s results.
|Analyst Firm||Rating||Price Target|
|HSBC||Buy||₹1,840 (down from ₹1,930)|
Price Action: HDFC Bank’s share price was up 0.94% to trade at ₹1,543.95 on Tuesday afternoon.
Disclaimer: Benzinga does not provide investment advice.
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