HDFC Bank's Rs 720-Crore Share Transaction Weighs On Stock, Drags Nifty Bank In Red

The share price of HDFC saw a decline of 1 percent or 16 points, and ended at Rs 1,533 price level on Friday.
HDFC's Board Approves Raising Up To Rs 14,000 Crore Via Equity Shares, Bonds
HDFC's Board Approves Raising Up To Rs 14,000 Crore Via Equity Shares, Bonds

HDFC shares ended in the red territory on October 13. The stock dragged down the sectoral index, Bank Nifty, as well. The fall was largely attributed to HDFC Bank's morning trading session, as 46.7 lakh shares, equivalent to a 0.1 percent stake valued at Rs 720 crore, exchanged hands at a per-share price of Rs 1,540.

The identities of the sellers and buyers involved in the transaction were not immediately disclosed or made available.

The share price of HDFC saw a decline of 1 percent or 16 points, and ended at Rs 1,533 price level on Friday. On the other hand, the Nifty Bank index also experienced a drop, falling by approximately 311 points.

The bank’s share price has consistently been in the red territory since the inception of this fiscal year. Post completion of the merger process, the stock has seen a fall of nearly 10 percent on the National Stock Exchange.

In a recent business update, HDFC Bank announced a significant 57.7 percent year-on-year (YoY) increase in its gross advances during the September quarter. Additionally, deposits also witnessed substantial growth, reaching approximately 30 percent. By the end of September, the bank's gross advances totaled around Rs 23,54,500 crore, marking a YoY growth of 57.7 percent.

It has been the weakest-performing banking stock in 2023. While midcap and smallcap peers have fared better, large-cap banks have faced challenges. This decline can largely be owing to the recent announcements from HDFC Bank regarding the merged HDFC Bank-HDFC entity, which have negatively affected the bank. Currently, HDFC Bank ranks as the world's seventh-largest lender.

Related Stories

No stories found.
logo
Outlook Business & Money
business.outlookindia.com