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HDFC Bank: Credit card biz, Covid-19 second wave pose near-term threat

Market participants were quick to offload shares of private lender HDFC Bank on Monday as near-term concerns on the bank’s growth prospects weighed on investors’ minds. Shares of the Mumbai-based bank skidded 4 per cent in the intra-day trade to hit a low of Rs 1,373 apiece on the BSE. HDFC Bank’s bottom line for the March quarter missed Street estimates as the lender set aside higher than expected provisions. The lender’s provision and contingencies in Q4FY21 rose 24 per cent over the same period last year to Rs 4,693.7 crore, which includes contingent provisions of Rs 1,300 crore. In the preceding quarter, provisions and contingencies made by the lender were to the tune of Rs 3,414 crore.

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