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HDFC Bank share price falls 3% as deposits, advances growth decline in Q1
HDFC Bank reported its Q1 business update which showed a sequential fall in advances and deposits.
HDFC Bank share price tumbled more than 3% in early deals today (July 5) as the private lender reported its Q1 business update which showed a sequential fall in advances and deposits. HDFC Bank’s advances dropped 0.8% quarter-on-quarter (QoQ) to ₹24.87 lakh crore at the end of June 2024 from ₹25.1 lakh crore at the end of March 2024.
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The bank’s advances grew 52.6% from ₹16.30 lakh crore on a year-on-year (YoY) basis while deposits in Q1FY25 were at ₹23,79,000 crore, registering a growth of 24.4% from ₹19,13,100 crore, YoY. Deposits were at similar levels compared to ₹23,79,800 crore as of March 31, 2024.
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Shares of HDFC Bank - down 2.4% this year compared with gains of over 11% in the benchmark Nifty 50 index - were set for their biggest one-day drop since June 4. The stock had hit a record high earlier this week on hopes of a bigger weight in a key MSCI index. HDFC Bank was also the top loser on the Nifty 50 index today.
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This week, HDFC Bank share price hit a record high of ₹1,791.90 apiece on the BSE on expectations of high passive fund inflows amid likely weight increase in MSCI index. The lender's latest shareholding pattern shows ownership of foreign institutional investors (FIIs) in HDFC Bank dropped below 55%, which is expected to lead to an increase in its stock’s weightage in the MSCI index leading to higher passive inflows.
