On Saturday, HDFC Bank shares raised nearly 4% after the bank, reported a 19.58% increase in net profit at Rs 6,658.62crore in the June quarter, compared to the same period a year ago.
HDFC Bank, country’s largest private sector lender by market value, said its net revenue stood at Rs 34,453.28 crore in the April-June period, up 6.46% against the same period in the corresponding year. Its net interest income increased by 17.84% to Rs 15,665.42 crore in the June quarter, driven by growth in advances and deposits of 20.9% and 24.6% respectively. Operating expenses declined by 2.90% YoY to Rs 7,117.30 crore due to the lower sales volumes and loan origination.
The shares hit an intraday up of 3.8%, high of nearly Rs 1,142, in early trading. At 9:30 am, the shares were trading at Rs 1141.80 about 3.7% up, on the BSE.
The negative economic impact of Covid-19 will lead to increased defaults by borrowers. The repayment ability of borrowers during the lockdown had been affected and, the private banks are already in the process of raising more capital and even some of them have raised. Private banks have put almost all the new recruitment on hold and continued to recruit people in their loan recovery functions which indicates that they are gearing up to handle increased loan defaults.

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On Friday, its shares have ended Rs 1099.15 at 3.46% higher on the BSE, gaining more than 7% within a span of 2 trading sessions.