Days after purchasing a 9.5% interest in six banks, the share price of HDFC Bank falls to a 52-week low
The share price of HDFC Bank fell by 2% during intraday trading on Wednesday, hitting a 52-week low. At 1:30 pm, the private lender’s shares were trading at ₹1369.00, having previously touched an all-time low of ₹1,363. Thus far this year, the shares have decreased by 20%.
HDFC Bank’s shares began at ₹1380, down from ₹1,394 at the closing of the day before. The company’s market capitalization was ₹10.39 lakh crore. Following Tata Consultancy Services and Reliance Industries in terms of market capitalization, HDFC Bank is the third most valuable firm.
The benchmark Sensex of the Bombay Stock Exchange fell more than 675 points earlier in the day, following unfavorable indications in the global market and unseating investor confidence with the release of US inflation data that was higher than anticipated. The BSE index was trading lower at 71,206 at 1:34 pm.
The Reserve Bank of India (RBI) has given HDFC Bank permission to purchase up to 9.5 percent stakes in each of six lenders, including Axis Bank and ICICI Bank, the bank said in a regulatory statement last week.
The HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company, and other companies are part of the HDFC Bank Group.
The lender said in a regulatory filing that “the approvals were granted pursuant to applications made by HDFC Bank (as a promoter/sponsor of the Group) to RBI on December 18, 2023.”
HDFC Bank revealed last month that its consolidated net profit for the October–December quarter increased by 2.65% to ₹17,258 crore from ₹16,811 crore in the previous September quarter.
Following its July merger with its mortgage lender parent HDFC, the biggest private sector lender announced a net profit of ₹16,372 crore, up from ₹15,976 crore in the same quarter last year.
According to exchange records, PTI reported that during the quarter, the company’s core net interest income increased to ₹28,470 crore, while its other income remained at ₹11,140 crore.
