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HDFC Bank share price extends decline; plunges over 10% in two days after Q3 results
HDFC Bank share price extended decline on Thursday, falling another 3% in early trade after the private lender’s December quarter earnings disappointed investors. HDFC Bank shares fell as much as 3.86% to ₹1,480.25 apiece on the BSE. HDFC Bank’s US-listed shares (American Depository Receipts) plunged 9.1% to $55.5 overnight, witnessing its biggest single-day drop since March 2020. HDFC Bank ADR has crashed more than 15% in the last two days. The stock of HDFC Bank cracked more than 8% on January 17, witnessing the biggest single-day decline in over three years, after the lender reported mixed Q3 results. The fall in HDFC Bank shares weighed on the Nifty Bank index that dropped over 4% on Wednesday. The largest private sector lender in India reported a net profit of ₹16,372 crore in the third quarter of FY24, registering a growth of 33% from ₹12,259 crore in the year-ago period. HDFC Bank's net interest income rose 24% YoY to ₹28,470 crore in the December quarter. However, the lender’s net interest margin (NIM) of 3.6% missed expectations. “The third quarter performance seems at par, however, the higher credit-to-deposit (CDR) of 110% and lower liquidity coverage ratio (LCR) of 110% in Q3 against 126% in Q2 are cause of concerns. The lower LCR and slower deposit growth may limit NIMs expansion going forward. The lower LCR, CDR bottleneck and slower deposit growth may squeeze NIMs going forward," said Ajit Kabi, Research Analyst at LKP Securities. Source - MInt
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