HDFC just became the third Indian company after Reliance and TCS to achieve a market value of more than ₹6 trillion
- On March 13th, a surge in the
share priceof HDFC Bankdrove the lender past a market valueof ₹6 trillion.
- HDFC Bank has been on a remarkable run as of late. The shares of the bank have risen in each of the last five trading sessions, capping a 6% jump to a record high of ₹2,227.40.
- At a time when the Indian
bankingsector has seen profits shrink amid higher provisions for bad loans, HDFC has consistently recorded a 20% growth in profits for the last couple of years.
TOP VIDEOS FOR YOUHDFC Bank has been on a remarkable run as of late. The shares of the bank have risen in each of the last five trading sessions, capping a 6% jump to a record high of ₹2,227.40.
Concurrently, the Nifty Bank Index hit an all-time high of nearly 29,000 points this morning.
The increased enthusiasm for HDFC Bank’s shares follows an announcement that the bank will meet on April 20th to review its results for the 2018-19 fiscal year. The bank started as housing finance company in 1977, before commencing operations as a scheduled commercial bank in 1995 as part of the RBI’s drive to liberalise India’s banking sector.
In the last one year, HDFC Bank’s shares have risen by 19%. At a time when the Indian banking sector has seen profits shrink amid higher provisions for bad loans, HDFC has consistently recorded a 20% growth in profits for the last couple of years.
The bank posted a solid earnings report for the quarter ended December, with a 20% growth in profits as well and a bad loan ratio of less than 1.5%.
In February, CLSA, a global brokerage, listed the bank as one of its best bets in India’s banking sector, citing its healthy growth and increasing market share.
The lender seems set to be the highest-valued bank in India for a long while. The second-largest bank by market cap is ICICI, which has a market value of ₹2.52 trillion.
HDFC Bank still has miles to go, however, if it wants to catch up with Reliance Industries, which has a market value of ₹8.52 trillion, and TCS, with ₹7.49 trillion.
In July 2018, Reliance Industries overtook TCS to become India’s most valuable company, with a market cap of ₹7.46 trillion compared to the latter’s ₹7.39 trillion. At the time, HDFC Bank had a market value of ₹5.74 trillion.
AdvertisementReliance Industries just beat Tata Consultancy Services to become India’s highest-valued company
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