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New Delhi<\/strong>: The shares of HDFC Bank, which had been performing well due to the anticipated increase in MSCI weightage, experienced a significant drop of over 3% to reach a day\u2019s low of Rs 1,665.55 on the BSE.<\/p>\n This decline was attributed to a sharp decrease in the CASA ratio as indicated in the bank\u2019s June quarter business update.<\/p>\n In the first quarter, HDFC Bank witnessed soft deposit growth, which increased by 15.3% YoY on a pro-forma basis and remained flat sequentially. The CASA also saw a 5% QoQ decline, leading to a decrease of approximately 190 bps QoQ, bringing the CASA ratio down to 36%.<\/p>\n The bank reported a 14.9% YoY growth in its loan book and a 16.5% YoY growth in deposits after excluding the merger impact. However, both loan and deposit growth were slightly lower than usual, as observed by market analysts.<\/p>\n Despite an overweight call on the bank with a target price of Rs 2,100, Bernstein noted that the lower CASA might counter gains from a better loan mix. On the other hand, Macquarie expects NIMs to be largely unaffected.<\/p>\n Interestingly, the bank, in its pre-Q1 update, disclosed the growth in average balances for deposits and AUM. It mentioned that average deposits grew by 4.6% QoQ, while average AUM grew by 0.8% QoQ. This growth was primarily due to the sharp build-up of deposits in the previous quarter, resulting in an inflated average balance.<\/p>\n Nomura indicated that the Q1 update suggests a moderation in core NIMs on a QoQ basis in Q1. Despite this, HDFC Bank\u2019s NIM at 3.44% in Q4 still falls well below the 4%+ levels of other large private bank peers.<\/p>\n In the past year, HDFC Bank shares have remained relatively unchanged. The recent rally was driven by the news of a potential increase in the bank\u2019s weightage in the MSCI EM index. Nuvama predicts that the lender\u2019s weightage in the global index could double to 7.2%-7.5%, potentially resulting in $3.2 billion to $4 billion in inflows.<\/p>\n<\/div>\n [ad_2] [ad_1] New Delhi: The shares of HDFC Bank, which had been performing well due to the anticipated increase in MSCI weightage, experienced a significant drop of over 3% to reach a day\u2019s low of Rs 1,665.55 on the BSE. This decline was attributed to a sharp decrease in the CASA ratio as indicated in the […]<\/p>\n","protected":false},"author":1,"featured_media":33205,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-33204","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"jetpack_featured_media_url":"https:\/\/thenftimes.com\/wp-content\/uploads\/2024\/07\/OIP-19.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts\/33204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/comments?post=33204"}],"version-history":[{"count":1,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts\/33204\/revisions"}],"predecessor-version":[{"id":33206,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/posts\/33204\/revisions\/33206"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/media\/33205"}],"wp:attachment":[{"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/media?parent=33204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/categories?post=33204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thenftimes.com\/index.php\/wp-json\/wp\/v2\/tags?post=33204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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