scorecardresearch
Follow Us:
Thursday, July 29, 2021

HDFC Bank shares tumble over 3% after Q1 earnings

The stock went lower by 3 per cent to Rs 1,475 on the BSE. At the NSE, it dipped 3.17 per cent to Rs 1,474.

By: PTI | New Delhi |
July 19, 2021 12:27:25 pm
hdfc bank, hdfc bank newsA security guard stands outside of a HDFC bank branch in Kolkata. (Express Photo by Partha Paul)

Shares of HDFC Bank dipped over 3 per cent on Monday as the company’s June quarter earnings failed to enthuse investors.

The stock went lower by 3 per cent to Rs 1,475 on the BSE.

At the NSE, it dipped 3.17 per cent to Rs 1,474.

HDFC Bank’s consolidated net profit for the June quarter increased 14 per cent to Rs 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 Rs 8,434 crore, there was a decline in the consolidated profit. On a standalone basis, the bank reported a post-tax profit of Rs 7,730 crore as against Rs 6,659 crore in the year-ago period and Rs 8,187 crore in the January-March period.

Its core net interest income grew 8.57 per cent to Rs 17,009 crore on advances growth of 14.4 per cent and the net interest margin coming at 4.1 per cent, while the other income grew 54.3 per cent to Rs 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 Rs 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.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
Advertisement

Advertisement
Advertisement
Advertisement