If Your Dad Invested ₹10,000 In HDFC Bank A Decade Ago, Here's How Much You'd Have Today

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 FirmRatingPrice Target
JefferiesBuy₹2,030
Morgan StanleyOverweight₹2,110
HSBCBuy₹1,840 (down from ₹1,930)
CitiBuy₹2,110

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.

Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.

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