HDFC Bank has surrendered its morning gains due to concerns surrounding a rise in provisioning for bad loans. At 1.00pm, the stock was trading at Rs 1,259, lower by Rs 18 or 1.4 per cent, on the BSE. The stock touched a high of Rs 1,303 and a low of Rs 1,254 thus far. The BSE Sensex had shed 0.8 per cent at 41,602 and the NSE Nifty had lost 0.8 per cent at 12,246.
Post market hours on Friday, HDFC Bank reported a stellar 32.8 per cent increase in its net profit for the quarter ended December 31, 2019. The private lender posted a consolidated net profit of Rs 7,416.5 crore in the third quarter of this fiscal, as opposed to Rs 5,585.8 crore in the corresponding quarter last fiscal. Net interest income (NII), the difference between interest earned and interest paid, for Q3 FY20 increased 19.9 per cent to Rs 14,173 crore on the back of growth in advances.
However, the provisions and contingencies for the quarter rose by a whopping 37.62 per cent to Rs 3,043.6 crore, as opposed to Rs 2,211.5 crore in the corresponding quarter of the previous year.
On Friday, HDFC Bank shares had closed down 0.7 per cent at Rs 1,277 on the BSE ahead of the release of its financial results.