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In response to mixed opinions expressed by analysts during HDFC Bank's investor meeting, the bank's share price witnessed a significant drop of 4.02% in early trading on the Bombay Stock Exchange (BSE) this Wednesday. The stock opened at ₹1,599, down from the previous day's closing price of ₹1,629.05. As a result, HDFC Bank's market capitalization on BSE dipped to approximately ₹11.8 lakh crore.
Over the past year, HDFC Bank shares have notably underperformed the benchmark Sensex. While HDFC Bank's shares saw a modest increase of only 4%, the Sensex recorded a gain of approximately 13% during the same period. On July 3rd this year, HDFC Bank reached its 52-week high of ₹1,757.80, while its 52-week low was noted at ₹1,365.05 on September 30th of the previous year, both on BSE.
Simultaneously, the Reserve Bank of India (RBI) has granted approval for the reappointment of Sashidhar Jagdishan as HDFC Bank's Managing Director and Chief Executive Officer. Jagdishan will continue to lead the bank for an additional three years, extending his tenure until October 26, 2026.
During the analysts' meeting, HDFC Bank acknowledged the potential challenges of a merger with its parent company, Housing Development Finance Corp. (HDFC). Chief Financial Officer Srinivasan Vaidyanathan highlighted the possibility of a 25-basis-point narrowing of the net interest margin (NIM) due to the cumulative impact of an incremental cash reserve ratio (CRR) and excess liquidity. Before the merger, HDFC had accumulated an excess liquidity buffer of nearly ₹1 trillion.
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