HDFC Bank shares slump 4% after reporting muted growth in June quarter

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Shares of HDFC Bank slipped 3.82 per cent at Rs 1660 per share on the BSE in Friday’s intraday trade. In the last two trading sessions the counter has slid by 6.1 per cent. This came after the company reported sluggish growth on Thursday in its early estimates for the first quarter of fiscal year 2023-24 (Q1FY24). 

HDFC Bank's gross advances stood at Rs 24.87 trillion as on June 30, compared to Rs 25.08 trillion on March 31 — down 0.8 per cent sequentially. Advances grew 14.9 per cent year-on-year (Y-o-Y), excluding the impact of the merger of erstwhile HDFC Ltd.

The deposit book as of June 30 was Rs 23.79 trillion, almost flat compared to the quarter ago period. Deposits grew 16.5 per cent Y-o-Y, excluding the impact of the merger. CASA deposits grew 6.2 per cent Y-o-Y while down 5 per cent sequentially. The bank’s liquidity coverage ratio average was around 123 per cent for the quarter

During the quarter, retail loans increased by around Rs 18,600 crore, commercial and rural banking loans grew by approximately Rs 7,200 crore, while corporate and other wholesale loans decreased by Rs 26,600 crore compared to March 31, 2024, as per the Bank’s regulatory filing.

At 10:00 AM; the stock of the company was trading 4.13  per cent lower at Rs 1,655.25 per share on the BSE. In comparison the BSE Sensex fell 0.64 per cent to 79,535 levels.

At present, the shares of the company are trading at a price to earnings multiple of 21.60 times with an earning per share of Rs 79.93.