HDFC Bank shares fell as dip buyers were insufficient following Wednesday s crash, resulting in a loss of Rs 1.3 lakh crore in market capitalisation. Investor concerns include flat NIM despite ICRR withdrawal and decline in LCR. Deposits grew slowly compared to guidance. Jefferies sees potential in HDFC Bank s valuation and emphasizes NIM expansion for stock movement. Nomura downgraded the stock due to funding mix challenges.
Shares of HDFC Bank crashed over 7% to Rs 1,560 on Wednesday following its Q3 results. Despite a 34% uptick in net profit, investors were unimpressed by loan growth and margins. Top brokerages red-flagged loan growth and lower liquidity coverage ratio (LCR) while maintaining their ratings. HDFC Bank reported a good set of numbers with net profit rising 34% YoY to Rs 16,372.54 crore. Net interest income (NII) rose 24% YoY to Rs 28,471.34 crore. CLSA maintained a buy view, Morgan Stanley remains overweight, Kotak Equities retained buy, and Nuvama downgraded to hold.