HDFC Bank Largest private lender in nation
The share price of HDFC Bank fell more than 4% during trading on the BSE on Wednesday as a result of brokerage companies’ conflicting opinions on the stock following the Monday, September 18, at the bank’s analyst and institutional investor meeting. The largest private lender in the nation, HDFC Bank, saw its shares fall 4% at the close of trading, making it the top loser on both the Nifty 50 and Sensex indices.
Shares of the bank closed 3.85% lower on the NSE at Rs. Analysts’ worries about the bank’s recently completed merger with HDFC Ltd and its potential influence on important financial ratios led to this precipitous decline. The stock started trading on Wednesday at $1,599 compared to the previous closing of $1,629.05 and dropped 4.20 percent to reach $1,560.60. At 1,563.90, the stock eventually finished 4% lower.
Market Cap of HDFC Bank Takes $49,000 Billion Hit in a Day
The market capitalization (mcap) of HDFC Bank stock decreased by around $49,000 billion in a single day, falling to almost $11.85 billion on the BSE today from $12.3 billion in the previous session. In the past year, the share price of HDFC Bank has significantly lagged behind the benchmark Sensex. While the Sensex has risen by around 12% over the past year, HDFC Bank shares have only increased by roughly 3%.
Sashidhar Jagdishan reappointed as CEO of HDFC Bank
On July 3 of this year, the stock reached a 52-week high of $1,757.80, while on September 30 of last year, it reached a 52-week low of $1,365.05, both on the BSE. Sashidhar Jagdishan has been reappointed as managing director and CEO of HDFC Bank for a further three years, till October 26, 2026, by the Reserve Bank of India (RBI).
HDFC Bank Foresees Challenges After Merger with HDFC Ltd
In a recent conference with analysts, HDFC Bank talked about the immediate difficulties it expects to face following its merger with HDFC Ltd. One of the issues raised was the potential for a net interest margin (NIM) contraction of 25 basis points (bps). Due to variables such the incremental cash reserve ratio (CRR) and surplus liquidity—HDFC had amassed a sizeable liquidity buffer before the merger—and other factors, the NIM is likely to decrease.
Global brokerage house Nomura decreased the target price for HDFC Bank’s stock from Rs 1,970 to Rs 1,800 in reaction to these worries and the conclusions of the meeting. They also downgraded the stock’s rating from ‘buy’ to ‘neutral’. Nomura listed a number of unfavorable revelations from the analyst meeting, including net worth adjustments that affected book value per share (BVPS), anticipated NIM decreases, higher cost-to-income ratios as a result of accounting changes, and a potential rise in non-performing assets (NPAs) in HDFC’s corporate loan book.
Downgrade Sparks Significant Drop in HDFC Bank Stock
In the meantime, HDFC’s price objective was decreased by Antique Stock Broking from Rs 2,025 to Rs 1,925. The downgrading resulted in a notable drop in HDFC Bank’s stock, with shares plummeting by around 4%. Ever since HDFC Bank and HDFC merged, its stock has underperformed. It should be mentioned that the bank has lost 3.85% of its value so far this year as a result of today’s decrease.
In the meantime, the bank’s stock has dropped more than 4% during the previous five sessions. Analysts believe that given the worries raised by brokerages, HDFC Bank stock may experience a period of consolidation. According to analysts cited in a CNBC-TV18 report, the stock is expected to find initial support in the Rs 1,530–Rs 1,500 region. Analysts anticipate that despite a potential near-term fall, the price will remain between Rs 1,500 and Rs 1,700. A decline below Rs. 1,500, though, might trigger another downturn.
