scorecardresearchThese bank stocks have dropped by up to 40% from their 52-week high
FPIs have pulled out about  <span class='webrupee'>₹</span>1 lakh crore worth funds from domestic stocks, by far in 2022.
FPIs have pulled out about  <span class='webrupee'>₹</span>1 lakh crore worth funds from domestic stocks, by far in 2022.

These bank stocks have dropped by up to 40% from their 52-week high

Updated: 10 Mar 2022, 04:31 PM IST
TL;DR.

Fund outflows from foreign investors have put banking stocks under pressure.

Nifty Bank has fired up and has reclaimed 34000 points. Investors all over the globe have remained on the back foot as they are tracking news flow on the Russia Ukraine Conflict. However, it seems like they are still in the bear zone. Fund outflows from foreign investors have put banking stocks under pressure. Here are a few banking stocks that you can add to your watchlist.

RBL Bank

In late December, the bank went through a period of transition and lost a large number of depositors. As a result, it has lost more than 11% of its value. The stock has lost 48.01 per cent of its value since its 52-week high of 253.70 and is now trading at 133.25 per share.

Nifty Bank has fired up and has reclaimed 34,000 points. Investors all over the globe have remained on the back foot as they are tracking news flow on the Russia Ukraine Conflict. However, it seems like they are still in the bear zone. Fund outflows from foreign investors have put banking stocks under pressure. Here are a few banking stocks that you can add to your watchlist.

RBL Bank

In late December, the bank went through a period of transition and lost a large number of depositors. As a result, it has lost more than 11% of its value. The stock has lost 48.01 per cent of its value since its 52-week high of 253.70 and is now trading at 133.25 per share.

Jaideep Iyer, Head-Finance, Strategy and Investor Relations, RBL Bank said, “We are thankfully quite over the hump on that. Depositors have come back, there are levels of deposits that are today higher than December 31, 2021, and even higher than the time when we declared our (third-quarter) results. We are sitting back on some 14,000 crore to 15,000 crore of extra liquidity.”

The private sector lender had reported a 2.58 per cent quarter on a quarter drop in deposits to 73,637 crore as on December 31, 2021, with retail deposits and deposits from small business customers falling by 11.3 per cent sequentially.

Many depositors had withdrawn funds following the Reserve Bank of India appointing an additional director on its board and its MD and CEO Vishwavir Ahuja proceeding on leave. However, in the third-quarter results call, the bank’s interim MD and CEO Rajeev Ahuja said there was a brief challenge to deposits in the last week of December, but it had since recovered and was higher than levels on December 24, 2021.

IDFC First Bank

IDFC First Bank is currently trading at 42.00 apiece, down 12.50% in one month and down 40.01% since its 52-week high of 68.35.

IDFC First Bank is about to merge with its holding company IDFC Limited which holds a 36.51% stake in the bank. 

This merger was agreed upon in December 2021 but there have been no developments since then. One of the key reasons for holding back the merger is the delay in hiving off IDFC AMC. IDFC is looking for a potential deal.

IDFC First Bank Ltd is quoting at 42.30, up by 0.25% on the day as on 15:30 IST on the NSE. 

The stock tumbled 40.21% in the last one year as compared to a 4.02% rally in NIFTY and a 10.04% fall in the Nifty Bank index.

The volume in the stock stood at 202.7 lakh shares today, compared to the daily average of 256 lakh shares in the last one month.

ICICI Bank Limited

Shares of ICICI Bank Limited are trading at 676 apiece. The shares have gone down by 23.46% since they reached their 52-week high of 867 per share.

The company had entered into an agreement to acquire a 9.49% stake in Verve Financial Services for 19.99 crores.

Brokerage firm Anand Rathi has given a buy call on ICICI Bank with a target of 800. The time period given by the analyst is 6 months.

HDFC Bank Limited

Share prices of HDFC Bank Limited have fallen by 10.52% in the past month and by 21.31% since its 52-week high of 1725 per share. Its shares are currently trading at 1392.80 a piece.

Sectoral index Nifty Bank has entered into the bear market, tanking 20.7% compared to its most recent peak of 41,829.6, on rising concerns of escalating crude oil prices cutting the country’s GDP growth. 

The country’s most valued banking stock in terms of market capitalization HDFC Bank has plunged 21.9% from its peak hit on Oct 18, and ICICI Bank has tanked over 23% from its high on Oct 25, both trading in the bear grip at the time of writing.

However, analysts see a potential upside of up to 55% on HDFC Bank’s counter, along with delivering healthy return ratios, even though the stock is currently witnessing weakness led by accentuating FII selling.

FPIs have pulled out about 1 lakh crore worth funds from domestic stocks, by far in 2022.

 

Exchange data show Nifty50 has given a return of 8 percent in the last one year (since March 2021) whereas Nifty Bank has fallen 4 percent in the same period. Some private banks are the worst hit while PSU banks have done much better. Nifty Private Bank index is down almost 9 percent in the last one year while Nifty PSU Bank index is up 7 percent.
Exchange data show Nifty50 has given a return of 8 percent in the last one year (since March 2021) whereas Nifty Bank has fallen 4 percent in the same period. Some private banks are the worst hit while PSU banks have done much better. Nifty Private Bank index is down almost 9 percent in the last one year while Nifty PSU Bank index is up 7 percent.
First Published: 10 Mar 2022, 04:31 PM IST