HDFC Bank Share Sale: Citigroup Offloads Stake Worth Rs 275 Crore

Citigroup Global Markets Mauritius Pvt. offloaded a stake worth Rs 275 crore in HDFC Bank Ltd. through open market transactions. On the other hand, Ghisallo Master Fund acquires a stake in the private bank.

Citigroup sold 15.79 lakh shares, representing a 0.02% stake in the company worth Rs 1,742.60 per share, according to block data on the BSE. Ghisallo Master Fund LP bought 15.79 lakh shares in HDFC Bank on Monday.

HDFC Bank reported a 5% jump in net profit at Rs 16,821 crore for the September quarter. This was above the Rs 16,000 crore estimate by analysts tracked by Bloomberg.

Net interest income of the bank rose 10% on year to Rs 30,114 crore. Slight deterioration in asset quality capped the rise in profit after tax.

Core net interest margin stood at 3.46% for the bank and 3.65% on an interest-earning asset basis. In the June quarter, the respective figures were at 3.5% and 3.7%.

The private sector bank's asset quality deteriorated, with the gross non-performing assets ratio rising to 1.36% as of Sept. 30, compared to 1.33% in the previous quarter. The net NPA ratio rose to 0.41% from 0.39% in the prior quarter.

Provisions of the bank fell to Rs 2,700 crore against Rs 2,903 crore a year, further aiding net profit.

Gross advances for HDFC Bank rose 7% year on year to Rs 25.2 lakh crore. Retail loans rose 11.3%, commercial and rural banking loans were up 17.4%, while wholesale loans were up 12%.

Total deposits rose 15% from last year to Rs 25 lakh crore. Current account and savings account deposits accounted for 35.3% of total deposits as of Sept. 30.

The shares of HDFC Bank were trading lower on Monday. The shares fell as much as 0.83% during the day to Rs 1,728.90 apiece on the NSE. It closed 0.53% lower at Rs 1,734.20 apiece. This compares to a 0.70% advance in the NSE Nifty 50 Index. It has risen 16.77% in the last 12 months and 2.13% year-to-date.

Out of 48 analysts tracking the company, 40 maintain a 'buy' rating and eight recommend a 'hold,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 12.7%.