Finance blogBanking

HDFC Bank becomes first bank in India to surpass market cap of Rs. 5 trillion


HDFC Bank becomes first bank in India to surpass market cap of Rs. 5 trillion

HDFC Bank, the lender which is valued the highest in India, has achieved another major milestone in recent times. HDFC Bank Limited has surpassed market capitalisation of Rs. 5 trillion for the very first time. HDFC Bank Limited is one out of only three companies in India to achieve this feat. HDFC Bank Limited’s stocks touched a new high of Rs. 1,53.75 for the BSE which indicated a rise of 3.31% from the earlier closing value. The stock closed at a whopping Rs. 1,931.80 which went up by 2.15% and the market cap stood at a gargantuan Rs. 5 trillion.

Reliance Industries Limited or RIL and Tata Consultancy Services or TCS are the only other Indian companies which have successfully outstripped Rs. 5 trillion in market capitalisation. Reliance India Limited is still the most valued organization in the country with Rs. 5.82 trillion in market cap. TCS has a market cap of Rs. 5.57 trillion and comes in at second place. HDFC Bank Limited has now taken the third spot in the list of most valued business organizations in India.

HDFC Bank has witnessed growth of 20% in its profits across quarters and has been relatively immune to the crisis involving bad loans or NPAs. HDFC Bank Limited’s ratio of bad loans is lower than even 1% which is one of the lowest such percentages amongst lenders in India. Investors continued pumping money into HDFC Bank stocks in spite of the higher valuation. This stood at 4.8 times of the expected book value for the current fiscal year. The recent stock gains are attributed to the positive news of the Central Government considering 100% FDI in the banking sector.

Over the last year, HDFC Bank’s stocks have gained handsomely by 42.34%. The December quarter earnings for HDFC will be reported on the 19th of January, 2018. The net profits may stand at around Rs. 4,652.90 crore as per approximate estimates. There should be ample growth in loans due to the bank’s strong focus on the retail lending segment while credit costs will remain firmly under control.


Share this post