The bank’s ADRs listed on the New York Stock Exchange (NYSE) plunged 9.34% to $23.92, shedding $2.46 after the earnings announcement. The weak sentiment spilled over to domestic markets, where HDFC Bank emerged as the biggest drag on benchmark indices.
The stock fell more than 5% during Monday’s session, touching an intraday low of ₹775 before settling at ₹777.60 on the NSE and ₹777.65 on the BSE, down 5.12% on both exchanges.
The decline wiped out ₹64,685.58 crore from HDFC Bank’s market capitalisation, taking its valuation below the ₹12 lakh crore mark to ₹11.98 lakh crore.
The sharp fall in India’s largest private sector lender also weighed heavily on the broader market. The BSE Sensex declined 442.93 points, or 0.57%, to close at 77,708.52, while the Nifty 50 fell 95.80 points, or 0.39%, to 24,238.50.
“Investor sentiment remained subdued after quarterly earnings from major private banks disappointed on the margin front, triggering a sharp sell-off in banking heavyweights,” said Ajit Mishra, SVP, Research at Religare Broking.
HDFC Bank had reported a 5% year-on-year increase in standalone net profit to ₹19,060 crore for the June quarter, compared with ₹18,155 crore a year earlier. However, the results failed to impress investors as margin pressure overshadowed the earnings growth.
Also Read: HDFC Bank shares get a downgrade from Investec after Q1 results, no more a ‘consensus buy’
While net interest income (NII) rose 7% year-on-year to ₹33,530 crore, the bank reported a net interest margin of 3.26% on total assets and 3% on interest-earning assets, missing market expectations. Total income also declined to ₹92,184 crore from ₹99,200 crore a year ago, while operating profit fell to ₹28,169 crore from ₹35,734 crore, reinforcing concerns over profitability.
(With agency inputs)
