HDFC Bank fell 2.78% to Rs 1087.75 after the bank's managing director Aditya Puri has sold 95% of his shareholding in the bank valued at Rs 843 crore.
According to insider trading data published by the stock exchanges on Saturday, Aditya Puri has sold 74,20,033 shares of the bank between 21 and 24 July. Before this transaction, Puri held 77.96 lakh shares or 0.14% of banks equity capital.
Aditya Puri has been the managing director and chief executive since 1994. His term ends on 20 October 2020.
In the past one month, the stock has added 3.13% while the S&P BSE Bankex has risen 2.68% during the same period. However, the stock has underperformed the S&P BSE Sensex, which has gained 7.89% in the same period.
The counter also witnessed additional selling pressure after the Reserve Bank of India (RBI) released its 21st Financial Stability Report on Friday said that the capital to risk-weighted assets ratio (CRAR) of Scheduled Commercial Banks (SCBs) edged down to 14.8% in March 2020 from 15% in September 2019 while their gross non-performing asset (GNPA) ratio declined to 8.5% from 9.3% and the provision coverage ratio (PCR) improved to 65.4% from 61.6% over this period.
It further added that macro stress tests for credit risk indicate that the GNPA ratio of all SCBs may increase from 8.5% in March 2020 to 12.5% by March 2021 under the baseline scenario; the ratio may escalate to 14.7% under a very severely stressed scenario.
HDFC Bank is one of India's leading private banks. As of 30 June 2020, the HDFC Bank's distribution network was at 5,326 branches and 14,996 ATMs/cash deposit & withdrawal machines (CDMs) across 2,825 cities/towns as against 4,990 branches and 13,727 ATMs/CDMs across 2,764 cities/towns as of 30 June 2019.
The private lender's net profit rose 19.58% to Rs 6,658.62 crore on 6.46% increase in total income to Rs 34,453.28 crore in Q1 June 2020 over Q1 June 2019.
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