HDFC Bank Shares Rise 2%
HDFC Bank’s shares rose 2% on Monday after India’s top private lender reported an uptick in its net interest margin for a second consecutive quarter over the weekend.
HDFC Bank gained the most in percentage terms on the Nifty Bank index, which declined 0.1%.
The bank’s standalone net profit for the first fiscal quarter beat analysts’ estimates, and its core net interest margin (NIM) on total assets rose to 3.47% from 3.44% in the previous quarter.
“We are encouraged to see HDFC Bank deliver another three-basis-point quarter-on-quarter expansion in NIMs during Q1. This comes after a four-basis-point expansion in the fourth quarter of fiscal 2023-24,” analysts at Jefferies said.
HDFC Bank’s NIM uptick reflects the repayment of higher-cost liabilities of HDFC Ltd and a fall in the share of low-yielding corporate loans, they added.
Despite this recent gain, HDFC Bank has lost 4.5% in 2024, compared to a 12.5% rise in the Nifty 50 and an 8% gain in the bank index.
