HDFC Bank’s stock dropped more than 2% on Jan 6, touching its lowest level in over three months after the bank released its Q3 business update.
Key figures from the Q3 update
- Average advances under management rose 9% YoY to ₹28.64 lakh crore.
- Period‑end advances grew 9.8% YoY to ₹29.46 lakh crore.
- Gross advances jumped 11.9% YoY to ₹25.43 lakh crore.
- Average deposits increased 12.2% YoY to ₹27.52 lakh crore.
- CASA deposits grew 9.9% YoY to ₹8.18 lakh crore.
What analysts are saying
Motilal Oswal kept a “Buy” rating, pointing to the solid growth in advances. Nomura noted that deposit growth slowed, pushing the credit‑deposit ratio close to 100%, which could limit loan growth unless new deposits come in.
Share price snapshot
- Down 2% on Jan 6, hitting ₹956 per share.
- Down about 3% over the past five trading days.
- Down more than 4% in the last month.
- Up 12.5% over the past year.
- Up 34% over the past five years.
Why it matters for investors
The bank’s strong loan growth is being offset by slower deposit inflows, which could pressure future lending capacity. Keeping an eye on deposit trends will be important for anyone holding HDFC Bank shares.
Remember, this is just an overview, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.