Fundamentals Boost Buying In HDFC Bank

Mumbai, January 22: | Updated: Jan 23 2003, 05:30am hrs
The stock price of HDFC Bank surged on Wednesday, on the back of the companys strong record on the performance front. On The Stock Exchange Mumbai, (BSE), the stock rose 5.4 per cent, as it closed at Rs 240.35 as against its previous close at Rs 227.15. As many as 1,86,382 shares changed hands on the counter.

Dealers said that the passage of the Securitisation Bill has created the right environment for the lending business. The strong Q3 results recently posted by the bank have also boosted sentiment on the counter of the private sector bank.

Insti-tutional investors have accumulated the scrip at the lower levels in the last few months, said dealers. The banks consistent performance reflected in a growth in revenues and net profit has also aided the recovery in its shares, dealers added.

Analysts felt that with the Securitisation Bill in place, wilful default by borrowers would come down.

HDFC Bank, which hitherto concentrated on lending to AAA corporates, could now move lower down the hierarchy which would increase its lending business.

For the third quarter ended December 31, it posted a 31 per cent rise in net profit to Rs 98.88 crore. The results were mainly driven by healthy balance-sheet growth and continued a stability of margins, analysts opined.