Why HDFC Bank Share Price Crashed? Biggest Single Day Fall In 3 Years


by Sandip Das on 17 January 2024,  5 min read

Why HDFC Bank Share Price Crashed? Biggest Single Day Fall In 3 Years - MyDhanush Blogs by Ashika

HDFC Bank‘s share price nose-dived intraday on January 17, 2024. It witnessed its biggest single-day fall in three years, a day after December quarter earnings. The country’s largest private sector bank recorded a 33 percent YoY increase in net profit. It amounts to Rs 16,372 crore, including a one-time tax rate gain. During the same quarter, the bank’s net interest income (NII) saw a 24 percent YoY rise to Rs 28,470 crore.

Meanwhile, the bank’s provisions surged by 50 percent to Rs 4,216 crore.

HDFC Bank witnessed its non-performing assets (NPAs) increase to 1.26 percent in Q3 FY24, up from 1.23 percent in the last fiscal year. However, its net NPA decreased to 0.31 percent from 0.33 percent during this period.

Income (Rs crore) December 2023 September 2023
Revenue 70,582.61 67,698.39
Other Income 11,137.04 10,707.84
Total Income 81,719.65 78,406.23
Net Profit 16,372.54 15,976.11
Operating Profit Margin % 33.50 33.52
Net Profit Margin % 23.20 23.60

As a result, the HDFC Bank stock witnessed a market cap erosion of approximately Rs 95,000 crore.

After the bank declared its Q3 earnings, the HDFC Bank ADR closed down over 6 percent in the US markets. The share price closed at $61, its biggest single-day drop since April 2022.

Also read: Union Bank, GSPL Top 2 Stocks Which Can Give Up To 14% Return

The term American depositary receipt (ADR) refers to a negotiable certificate issued by a US depositary bank representing a specified number of shares—usually one share—of a foreign company’s stock. The ADR trades on US stock markets as any domestic shares would.

HDFC Bank has over 14 percent weightage on the Nifty50 index. Any weakness in the stock will result in weakness in benchmark indices.

At 14.52 hours, HDFC Bank’s share price declined 8.31 percent at Rs 1539 per share on the NSE, registering its biggest single-day fall in the last three years.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.

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