Advertisement
Singapore markets closed

  • Straits Times Index

    3,301.78
    +4.23 (+0.13%)
     

  • S&P 500

    5,484.18
    +10.95 (+0.20%)
     

  • Dow

    38,855.50
    +77.40 (+0.20%)
     

  • Nasdaq

    17,866.95
    +9.93 (+0.06%)
     

  • Bitcoin USD

    64,737.15
    -692.82 (-1.06%)
     

  • CMC Crypto 200

    1,351.83
    -37.58 (-2.70%)
     

  • FTSE 100

    8,187.36
    +45.21 (+0.56%)
     

  • Gold

    2,331.90
    +2.90 (+0.12%)
     

  • Crude Oil

    80.57
    +0.24 (+0.30%)
     

  • 10-Yr Bond

    4.2520
    -0.0270 (-0.63%)
     

  • Nikkei

    38,482.11
    +379.67 (+1.00%)
     

  • Hang Seng

    17,915.55
    -20.57 (-0.11%)
     

  • FTSE Bursa Malaysia

    1,606.13
    -1.19 (-0.07%)
     

  • Jakarta Composite Index

    6,734.83
    -96.73 (-1.42%)
     

  • PSE Index

    6,368.80
    -14.90 (-0.23%)
     

HDFC Bank (HDB) Fell on a Slowdown in Deposit Growth

Soumya Eswaran
·3-min read

Harding Loevner, an asset management company, released its “Emerging Markets Equity Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund declined 0.1% gross of fees and fell short of the MSCI Emerging Markets Index, which posted a return of 2.4%. Weak stock selection in Financials, IT, and Health Care affected the relative performance of the fund offset by stronger returns in Consumer Discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Harding Loevner Emerging Markets Equity Strategy highlighted stocks like HDFC Bank Limited (NYSE:HDB), in the first quarter 2024 investor letter. HDFC Bank Limited (NYSE:HDB) is a banking and financial services provider. HDFC Bank Limited's (NYSE:HDB) one-month return was -1.00%, and its shares lost 14.47% of their value over the last 52 weeks. On June 4, 2024, HDFC Bank Limited (NYSE:HDB) stock closed at $55.51 per share with a market capitalization of $140.702 billion.

Harding Loevner Emerging Markets Equity Strategy stated the following regarding HDFC Bank Limited (NYSE:HDB) in its first quarter 2024 investor letter:

"In Financials, the largest detractor was India’s HDFC Bank Limited (NYSE:HDB), which reported a slowdown in deposit growth in an environment where the central bank has continued to tighten liquidity. If the bank cannot leverage its growing branch network to re-accelerate deposit growth over the medium term, this may constrain asset growth and crimp net interest margins; in early April, however, the bank reported record sequential deposit growth in the final quarter of its fiscal year, a promising start."

A business owner tallying their profits in the back office of a local banking branch.

ADVERTISEMENT

HDFC Bank Limited (NYSE:HDB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held HDFC Bank Limited (NYSE:HDB) at the end of the first quarter which was 41 in the previous quarter. HDFC Bank Limited’s (NYSE:HDB) net revenues for the quarter were at INR 396 billion, increased by 25.8% over prior year. While we acknowledge the potential of HDFC Bank Limited (NYSE:HDB) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed HDFC Bank Limited (NYSE:HDB) and shared Baron Emerging Markets Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.