HDFC Bank share price down 3% on deposits, growth recession in Q1

HDFC Bank reported its Q1 business update which showed a sequential decline in advances and deposits.

HDFC Bank share price fell over 3% in early deals today (July 5) as the private lender reported its Q1 business update, which showed a sequential decline in advances and deposits. HDFC Bank’s advances fell 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.

The bank’s advances grew by 52.6% from ₹16.30 lakh crore on a year-on-year (YoY) basis, while deposits stood at ₹23,79,000 crore in Q1FY25, a 24.4% increase from ₹19,13,100 crore on a YoY basis. Registers. Deposits as of March 31, 2024, were at the same level at ₹23,79,800 crore.

Shares of HDFC Bank – down 2.4% this year compared with a gain of more than 11% in the benchmark Nifty 50 index – were set for their biggest one-day fall since June 4. The stock hit a record high earlier this week and is a big weight in the major MSCI index. HDFC Bank was also the top loser on Nifty 50 index today.

This week, HDFC Bank share price hit a record high of ₹1,791.90 on BSE on expectations of higher passive fund inflows amid a possible weighting increase in the MSCI index. The lender’s latest shareholding pattern shows that foreign institutional investors (FIIs) ownership in HDFC Bank has dropped to 55%, which is expected to increase the weighting of its stock in the MSCI index leading to higher passive inflows.

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