BENGALURU – Shares of India’s top private lender HDFC Bank fell over 3% on Friday, a day after it reported a drop in loans during the three months ended June 30, and no rise in deposits from the previous three months.
HDFC Bank on Thursday said its gross advances dipped 0.8% sequentially in the first quarter.
The flat deposit growth was below what the bank managed a year ago, Jefferies analysts said in a note, calling it “slightly disappointing.”
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 on Friday.
The bank’s merger with its non-bank lender parent last year added a large pool of mortgage loans to its portfolio but a much smaller amount of deposits.
As of June’s end, the bank’s advances stood at 24.87 trillion rupees ($297.91 billion), while deposits stood at 23.79 trillion rupees.
Low-cost current and savings account deposits fell 5% sequentially to 8.64 trillion rupees in the quarter.
($1 = 83.4810 Indian rupees)
(Reporting by Sethuraman NR in Bengaluru and Siddhi Nayak; Editing by Nivedita Bhattacharjee)
