HDFC Bank Shares End At Over Two-Month Low As Bad Loans Rise

HDFC Bank shares fell nearly 4 per cent on Monday, after the private sector lender reported its earnings for the quarter ended June 30. On the Bombay Stock Exchange (BSE), the HDFC Bank stock opened at Rs 2,353.00 apiece, down 0.97 per cent compared to its previous close of Rs 2,375.95, and fell to as much as Rs 2,281.90 during the session. That marked an intraday decline of 3.96 per cent for the HDFC Bank shares. HDFC Bank shares were among the top laggards on the benchmark indexes Sensex and Nifty.

On the National Stock Exchange (NSE), HDFC Bank shares declined 3.97 per cent to hit an intraday low of Rs 2,281.25 apiece, compared to their previous close of Rs 2,375.65.

In a regulatory filing on Saturday, July 20, HDFC Bank reported a net profit of Rs 5,568 crore for the April-June period, up 21 per cent on a year-on-year basis. The net profit of the largest private sector lender in the country was in line with analysts' estimates. 

However, HDFC Bank said its gross non-performing assets (NPAs) increased 23.38 per cent to Rs 11,768.95 crore in the quarter ended June 30, compared with the corresponding three-month period a year ago. Net NPAs rose 22.71 per cent to Rs 3,567.18 crore. 

The bank's gross NPAs as a percentage of total advances - a measure of asset quality - stood at 1.40 per cent, as against 1.36 in the previous quarter. Excluding the agriculture segment, the gross NPAs stood at 1.17 per cent as of June 30, 2019, HDFC Bank added.

Net NPAs rose to 0.43 per cent in April-June, from 0.39 per cent in the previous quarter. 

The HDFC Bank stock ended 3.32 per cent lower at Rs 2,297.05 apiece on the BSE, marking their lowest closing price recorded since May 15 this year. The stock underperformed the benchmark Sensex index which finished 0.80 per cent lower.