1 Lac crore loss! HDFC Bank Records Worst Daily Performance in 3 Years

India’s second most-valued stock, HDFC Bank, faced a significant market downturn, witnessing an 8.5% fall – its worst daily performance since the Covid crash three years ago. This slump resulted in investors in the blue-chip losing over Rs 1 lakh crore, with the market capitalization of this Nifty heavyweight dropping to Rs 11.67 lakh crore.

Performance Metrics:

• Fall Percentage: 8.5%
• Market Capitalization Post-Fall: Rs 11.67 lakh crore

Historical Context:

• Previous Worst Fall: Recorded during the Covid lows on March 23, 2020, with a loss of 12.7%.

Factors Contributing to the Fall:

• Quarterly Results Disappointment:
• The decline followed disappointment in the December quarter results.
• Several brokerages lowered their target prices on the stock.
• Q3 Performance:
• Profits increased by 33% YoY to Rs 16,373 crore.
• Boosted by a one-off write-back of Rs 1,500 crore of tax provisions.

Analyst Commentary:

• Santanu Chakrabarti of BNP Paribas stated:
• Net Interest Margin (NIM) at 3.7% met expectations but remained flat sequentially.
• Disappointment centered around flat yields on interest-earning assets despite liquidity drawdown and a reduction in lower-yield wholesale loans.

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