HDFC Bank released the third quarter earnings on January 16, 2024. It reported a net profit of Rs 16,372 crore vs the market estimates of Rs 16,427 crore. In the previous year’s Q3, HDFC Bank reported a net profit of Rs 12,259 crore. But in the recent quarter, it reported Rs 16 427 crore, which is a jump of 33.5%.
The net interest income is Rs 28,470 crore vs Rs 22,990 crore in the previous fiscal year. It is an increase of 23.9% compared to Q3 of the previous fiscal. However, the reported NII is lower than the market estimates of Rs 29,554 crore.
India’s largest HDFC Bank’s gross non-performing assets (NPA) stands at 1.26%, slightly up from last year’s 1.23%. However, the Net NPA for the quarter stands at 0.31% compared to 0.33% last year.
HDFC Bank: Current Account and Saving Account Deposit
The total Bank deposits for the October to December FY24 quarter recorded at 28.47 lakh crore increased by 27.7% compared to the corresponding quarter last year. Current account and savings account deposits increased by 9.5%. The current account deposit is Rs 2.58 lakh crore, and savings account deposits are Rs 5.79 lakh crore.
Market Reaction After Q3 Earnings
On January 17, HDFC Bank share price tumbled 7.92% in an intraday session. At present the price is near Rs 1546 which is near to November 2023 high.
The reason for the sudden fall can be Q3 results. Moreover, HDFC Bank ADR fell 5% approx. in American markets which hurted the investors sentiment and affected the Indian HDFC shares.
The banking sector’s index is under-performing the Nifty50 index. After the recent decline in HDFC Bank shares the Banknifty is likely to get negatively impacted and under-performance may continue.
In the last month, HDFC Bank shares performed well and rewarded the short term bullish traders. However, after the recent fall it seems short term correction is about to begin.