HDFC Bank Shares Extend Gains For 2nd Straight Day

HDFC Bank shares continued their upward trajectory on December 4, 2024, at 10:45 AM, hitting a day high of ₹1,851.50 after opening at ₹1,838.00. This follows a gain of nearly 2% on December 3, 2024, spurred by a significant block deal involving 21.7 lakh shares valued at ₹392 crore. As a result, the bank’s market capitalisation surpassed ₹14 lakh crore.

The surge in HDFC Bank share price on December 3 was largely attributed to the large block deal, which contributed to a notable price increase. This followed a strong performance during the previous trading day, helping the bank’s market cap rise beyond ₹14 lakh crore.

All-Time High Hit in November 2024

HDFC Bank’s stock reached a fresh all-time high above ₹1,800 on November 25, 2024. This surge was driven by extraordinary trading volumes linked to the MSCI November rebalancing, which increased HDFC Bank’s weightage. Over 21.5 crore shares of the bank were traded across the NSE and BSE that day—almost 8.6 times its 20-day moving average of 2.5 crore shares.

The MSCI rebalancing, which included a significant rise in HDFC Bank’s weightage, was expected to bring in $1.88 billion in passive inflows. This boosted the bank’s stock, with the momentum continuing into late November, culminating in a new all-time high of ₹1,836.1.

HDFC Bank’s Q2 FY25 Performance

In its Q2 FY25 performance, HDFC Bank reported a 10% year-on-year increase in net interest income, reaching ₹30,114 crore. However, a slight deterioration in asset quality capped the rise in profit after tax.

The bank’s core net interest margin stood at 3.46%, with 3.65% on an interest-earning asset basis. In comparison, the figures for the June quarter were 3.5% and 3.7%, respectively. The private sector bank’s asset quality showed some deterioration, with the gross non-performing assets (NPA) ratio rising to 1.36% as of September 30, 2024, compared to 1.33% in the previous quarter. Similarly, the net NPA ratio increased to 0.41% from 0.39%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.