Brief Summary
This video discusses the Q1 results of HDFC Bank and ICICI Bank, two heavyweight shares, and their potential impact on the stock market. It analyzes their income, expenses, net profit, and NPA percentages, comparing them to market estimates and previous quarters. The video also touches upon HDFC Bank's bonus and dividend announcements and the weightage of these banks in Nifty 50, emphasizing their influence on market trends.
- HDFC Bank and ICICI Bank Q1 results analysis
- Comparison of income, expenses, and net profit
- Discussion of NPA percentages and market estimates
- Impact on Nifty 50 and market trends
Introduction
The video introduces the discussion about the quarter one results of two major shares, HDFC Bank and ICICI Bank, and their potential impact on the stock market. The presenter emphasizes the importance of these results in determining the market's direction on Monday, given the recent performance of other private sector banks like Axis Bank and Bandhan Bank, which have shown shrinking margins and declining profits.
HDFC Bank's Q1 Results
The presenter analyzes HDFC Bank's standalone results, noting that all figures are in crores. The bank provided numbers for the current quarter (June), the last quarter (Quarter 4), and the June quarter of the previous year (2024). HDFC Bank demonstrated good growth in total income, increasing from ₹83,701 crores in June 2024 to ₹99,200 crores in the current quarter. The bank also managed its expenses well, preventing margins from shrinking significantly. The net profit for the period was ₹18,155 crore, surpassing market estimates. However, the bank's gross NPA (Non-Performing Assets) increased to 1.40%, and net NPA rose to 0.47%, which is a concern.
HDFC Bank's Bonus and Dividend
HDFC Bank declared a special dividend of ₹5 per equity share along with its results. Additionally, the company announced a bonus issue in a 1:1 ratio, meaning that for every share an investor holds, they will receive one additional share. This effectively doubles the number of shares held by eligible investors.
Market Estimates and HDFC Bank's Performance
The presenter highlights that HDFC Bank's profit of ₹18,155 crore exceeded market estimates, which ranged from ₹16,400 crores to ₹17,120 crores. Overall, the bank's performance is considered quite good, except for the increase in NPA. The presenter encourages viewers to share their opinions on the expected stock movement following the results.
ICICI Bank's Q1 Results
The presenter moves on to analyze ICICI Bank's results, noting that all figures are in crores. The total income for the current quarter was ₹51,451 crores, showing good year-on-year and quarter-on-quarter growth. The bank also maintained excellent control over its expenses. The net profit for the period was ₹12,768 crore, and ICICI Bank also beat market estimates.
ICICI Bank's NPA and Overall Performance
ICICI Bank demonstrated strong performance in managing its NPA. The gross NPA decreased on a year-on-year basis, and the net NPA also dropped compared to the previous year. Although the net NPA increased slightly on a quarterly basis, the overall performance of ICICI Bank is considered excellent. Both HDFC Bank and ICICI Bank comfortably exceeded market estimates.
Weightage in Nifty 50 and Market Impact
The presenter explains that HDFC Bank and ICICI Bank have significant weightage in Nifty 50, along with Reliance Industries. HDFC Bank has a weightage of 13.25%, Reliance Industries has 8.94%, and ICICI Bank has 8.82%. The combined weightage of these three entities is over 32%, indicating their substantial influence on the market. The presenter suggests keeping an eye on these stocks, as their performance can significantly impact Bank Nifty and the overall market.
