In the early trading hours of Wednesday, HDFC Bank, the largest private lender in India, witnessed a 3 percent decline.
The share of HDFC Bank at 10:16 am IST were at Rs 1,567.20 down by 3.80 percent.
The decline in the stock was primarily driven by reductions in target prices, as analysts adjusted their expectations following the Analyst Meet conducted by the lender. Analysts, for the most part, revised their estimates for FY24 and FY25 downwards, citing negative developments resulting from the merger of the banks. These revisions were prompted by a decrease in the combined bank's net worth due to policy harmonization and accounting adjustments. Analysts expressed concerns about the merged entity experiencing an uptick in non-performing loans (NPLs), a decrease in net interest margin, and a weakening return on assets (RoA).
HDFC Bank re-appointment of Managing Director
On Tuesday, HDFC Bank via a regulatory filling announced that in pursuant to an application which was made by the Bank to the Reserve Bank of India (RBI) upon recommendation of the Bank’s Board of Directors in this regard, the RBI vide its communication dated September 18, 2023, has approved the re-appointment of Sashidhar Jagdishan as the Managing Director and Chief Executive Officer of the Bank for a period of 3 years w.e.f. October 27, 2023 to October 26, 2026.
HDFC Bank stock performance
Over the past year, HDFC Bank's stock performance has significantly lagged behind the benchmark Sensex. HDFC Bank shares have registered a modest 4 percent increase, whereas the Sensex has seen gains of approximately 13 percent during the same period.
The stock reached its 52-week high of Rs 1,757.80 on July 3 this year, and its 52-week low of Rs 1,365.05 on September 30 last year, as per BSE records.
