HDFC Bank share price falls over 3% after analysts meet; here's what brokerages forecast
HDFC Bank share price declined over 3 per cent in early trade on BSE on Wednesday after brokerage firms expressed their mixed views on the stock post the bank's analyst and institutional investor meeting on Monday (September 18). The stock opened at ₹1,599 against the previous close of ₹1,629.05 and soon fell 3.31 per cent to the level of ₹1,575.15. HDFC Bank share price has strongly underperformed the benchmark Sensex in the last one year.
HDFC Bank shares are up by just 4 per cent while the Sensex has gained about 13 per cent in the last one year period. Meanwhile, the Reserve Bank of India (RBI) has approved the reappointment of Sashidhar Jagdishan as HDFC Bank managing director and chief executive officer for three more years till 26 October 2026. In its analysts' meeting, HDFC Bank pointed out the possibility of a worsening of net interest margin (NIM), net worth and asset quality in the short term following its merger with parent Housing Development Finance Corp.
(HDFC). NIM may narrow 25 basis points (bps) due to the combined effect of incremental cash reserve ratio (CRR) and excess liquidity, analysts cited chief financial officer Srinivasan Vaidyanathan as saying at the meeting. Before the merger, HDFC had built an excess liquidity buffer of close to ₹1 trillion.
Read more: HDFC Bank may face margin, net worth hit Following the analysts' meeting, global brokerage firm Nomura downgraded HDFC Bank stock to a 'neutral' from a 'buy' and cut the target price to ₹1,800 from ₹1,970 earlier. In a report on September 20, Nomura said it found the following four negative surprises from the analyst meeting of HDFC Bank: (1) Net worth adjustments have a negative 4 per cent impact on FY24F BVPS (book value per share). (2) NIM
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