HDFC Bank’s share price surged over 3% on Monday, following the bank’s announcement of better-than-expected earnings for Q2 FY25. The stock reached ₹1,734.45 on the BSE, reflecting investor optimism. Despite the rally, HDFC Bank’s stock performance has remained flat year-to-date, though it gained over 7% in the last three months.
The bank reported a standalone net profit of ₹16,821 crore for the quarter ended September 2024, marking a 5.3% year-on-year rise from ₹15,976 crore. Net interest income (NII) grew 10% YoY to ₹30,110 crore, while net interest margins (NIM) stood at 3.65%, driven by a better portfolio mix.
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HDFC Bank’s asset quality remained stable during the quarter, unlike its peers, thanks to the bank’s conscious strategy to limit growth in unsecured loans. The bank’s ability to maintain steady asset quality amid industry challenges was a positive signal to investors.
In addition to its Q2 results, HDFC Bank announced plans to raise ₹12,500 crore through an upcoming initial public offering (IPO) of its subsidiary, HDB Financial Services. The bank will sell shares worth ₹10,000 crore via an offer-for-sale (OFS), while it retains a 94.6% stake in the subsidiary.
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HDFC Bank’s stock has seen modest gains over the past year, rising more than 13%. However, the stock’s year-to-date performance remains relatively flat, despite gaining over 7% in the past three months, reflecting a mixed market sentiment.
At 9:40 am, HDFC Bank shares were trading 2.75% higher at ₹1,727.35 on the BSE. With positive earnings and a stable asset quality outlook, the stock has garnered attention from both short-term and long-term investors, leading to renewed interest.
