Archive · 20 Jul 2026
HDFC Bank ADRs Plunge 9.34% After Weak Earnings
HDFC Bank's shares dropped a lot in both the US and India after they reported their earnings for the last three months.
The bank made less money than people expected, especially from the difference between what they earn from loans and what they pay for deposits.
This made investors worried, and they sold their shares, causing the price to go down.
However, some experts think the bank will do better in the long run and are still recommending people buy its shares.
The bank's CEO said they are focusing on growing their business and gaining more market share, even if it means not making as much profit in the short term.
HDFC Bank's ADRs plunged 9.34% to $23.92 on the NYSE due to weaker-than-expected June-quarter earnings.
The bank's shares dropped over 5% in the Indian market, wiping out Rs 64,685.58 crore from its market capitalization.
Net profit grew 5% year-on-year to Rs 19,060 crore, but total income and operating profit declined.
Net interest margins (NIMs) fell short of expectations, standing at 3.26% on total assets and 3% on interest-earning assets.
Brokerages like Motilal Oswal remain positive on the long-term outlook, with a target price of Rs 1,050, implying a 28% upside potential.
- Who
- HDFC Bank and its investors
- What
- Plunge in ADRs and market capitalization due to weaker-than-expected earnings
- When
- After the release of June-quarter earnings
- Where
- New York Stock Exchange (NYSE) and Indian stock markets (BSE and NSE)
- Why
- Pressure on net interest margins (NIMs) and decline in operating profit and total income
Short-Term Investors
Long-Term Investors
Reaction to Earnings
Short-Term Investors
Sold shares due to weaker-than-expected June-quarter earnings and pressure on net interest margins (NIMs).
Long-Term Investors
Maintained a positive outlook, focusing on long-term growth and market share gains.
Profitability Concerns
Short-Term Investors
Worried about the sharp decline in operating profit and total income.
Long-Term Investors
Expect gradual improvement in profitability as funding costs ease over time.
Brokerage Ratings
Short-Term Investors
Reacted to the immediate market downturn.
Long-Term Investors
Brokerages like Motilal Oswal reiterated 'Buy' ratings with target prices indicating significant upside potential.
- ADR Plunge
- 9.34% to $23.92
- Market Cap Loss
- Rs 64,685.58 crore
- Net Profit Growth
- 5% year-on-year to Rs 19,060 crore
- Net Interest Income Growth
- 7% year-on-year to Rs 33,530 crore
- Net Interest Margin
- 3.26% on total assets and 3% on interest-earning assets
- Brokerage Target Price
- Rs 1,050 (Motilal Oswal)
- Loan Growth Drivers
- SME and corporate segments
- CEO Statement
- Focus on long-term growth and market share gains