HDFC Bank shares tank over 5 pc post earnings announcement

New Delhi, Jul 20 (PTI) Shares of HDFC Bank on Monday tumbled over 5 per cent after its quarterly earnings failed to cheer investors, dragging the benchmark indices sharply lower.

The blue-chip stock declined 5.14 per cent to Rs 777.50 on the BSE.

At the NSE, the stock tanked 5.13 per cent to Rs 777.50.

Heavy selling in HDFC Bank dragged the equity markets lower in early trade. The 30-share BSE Sensex quoted 541.60 points down at 77,609.85. The 50-share NSE Nifty declined 140.80 points to 24,191.80. HDFC Bank on Saturday reported a 5 per cent increase in standalone profit to Rs 19,060 crore for the June quarter.

The country’s biggest private sector lender had earned a net profit of Rs 18,155 crore in the year-ago period.

However, the total income

of the bank during the quarter under review dropped to Rs 92,184 crore from Rs 99,200 crore in the same period a year ago, HDFC Bank said in a regulatory filing.

The lender’s interest income increased to Rs 79,363 crore from Rs 77,470 crore in the same quarter a year ago.

During the period, operating profit of the bank declined to Rs 28,169 crore, as compared to Rs 35,734 crore in the same quarter a year ago.

Net interest income grew 7 per cent to Rs 33,530 crore from Rs 31,440 crore for the June quarter, it said.

Net interest margin was at 3.26 per cent on total assets, and 3 per cent based on interest earning assets.

“HDFC Bank has disappointed, particularly on the NIM front,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said. PTI SUM SUM DR DR