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HDFC Bank's weak Q1 performance may keep Bank Nifty under pressure

The private bank bellwether reported its lowest NII growth in a decade

HDFC Bank writes off Rs 3,100-crore NPAs in the April-June quarter
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Most analysts continue to maintain a “Buy” rating on HDFC Bank projecting upsides of roughly 25 per cent from current share price in the next 12 months.

Devangshu Datta New Delhi
The Q1 results of HDFC Bank disappointed and sent tremors through the private banking space. HDFC Bank, among the most highly-valued institutions in the world, recorded its lowest growth in Net Interest Income (NII) in at least ten years. It also saw rising non performing assets (NPAs), and higher write offs, and in a show of caution, boosted provisioning and contingency reserves. The subsidiary, HDB Financial, took a hit with elevated NPAs as well.

Much of this was the effect of the Second Wave. The bank believes robust high-speed indicators signal strong growth through the rest of 2021-22. It is

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