Weaker margins and a high credit-to-deposit ratio spooks analysts, but medium to long term fundamentals for the bank stay strong
HDFC Bank, India’s largest private lender, slid 8.97 percent intra-day on Wednesday, dragging the entire stock markets down with it, after reporting weaker than expected earnings in some matrix for its December-ended Q3FY24 earnings.
The stock contributed to over 50 percent of the fall to both the Nifty 50 and the Nifty Bank indices, while erasing over 1 lakh crore of market cap in a single day. By the end of the trading day, HDFC Bank closed down 8.16 percent at Rs1,570 at the NSE. The NSE 50 closed down 460 points or 2.09 percent at 21,571.95 and the BSE Sensex index down 1,628.02 points at 71,500.76 on Wednesday.