HDFC Bank shares jump over 10%; other banks too rally

Shares of HDFC Bank on Tuesday jumped over 10 per cent after the lender reported a 7.41 per cent increase in aggregate deposits during the January-March period.

The scrip advanced 10.18 per cent to close at Rs 896.35 on the BSE. During the day, it climbed 11.37 per cent to Rs 906.05.

On the NSE, it rose by 10.10 per cent to close the day at Rs 896.10.

In terms of traded volume, 11.73 lakh shares were traded on the BSE and over 3 crore units exchanged hands on the NSE.

Its market valuation also jumped by Rs 45,429.03 crore to Rs 4,91,494.38 crore on the BSE.

HDFC Bank has bucked what was emerging as a trend of private sector lenders facing a fall in deposit base during the March quarter.

The largest private sector lender has reported a 7.41 per cent increase in aggregate deposits during the January-March period to Rs 11.46 lakh crore, which was 24 per cent higher as compared to March 31 last year.

HDFC Bank said its advances have risen by around 21 per cent to Rs 9.93 lakh crore as of March 31 and have grown by over 6 per cent for the March quarter as compared to December-end.

It purchased Rs 5,479 crore of loans from parent mortgage lender HDFC during the quarter, the bank said in an intimation to stock exchanges late on Friday.

Equity markets were closed on Monday for 'Mahavir Jayanti'.

"Indian equities are significantly up today, following positive cues from global markets, consecutive days of decline in intensity of COVID-19 cases and reports from banking sector on healthy growth in advances as well as comfortable deposit position," said Amar Ambani, Senior President and Head of Research, YES Securities.

Other banks also gained, with IndusInd Bank rising nearly 23 per cent, followed by Axis Bank up 19.41 per cent, ICICI Bank 13.82 per cent, Federal Bank 7.01 per cent, State Bank of India 6.15 per cent, Kotak Mahindra Bank 5 per cent, RBL Bank 4.73 per cent and City Union Bank 1.41 per cent.

Led by rise in these scrips, the BSE Bank index zoomed 10.70 per cent to close at 21,868.34.

The BSE benchmark Sensex surged 2,476.26 points or 8.97 per cent to settle the day at 30,067.21

Private sector lender Kotak Mahindra Bank on Monday reported a healthy jump in deposit base for the March quarter, and announced a reduction in savings account rates for high value customers.

The bank witnessed an 11.7 per cent rise in customer deposits and a 1.3 per cent jump in advances during the March quarter, as against the quarter ended December 31, 2019, an official statement said.