HDFC Bank becomes third Indian company to cross $100 bn M-cap
HDFC Bank Ltd has crossed the $100 billion market capitalization (M-Cap) in intraday trading, thus becoming only the third company in India to achieve this milestone. However, it closed below $100 billion mark at $99.5 billion. HDFC is one of India’s largest private-sector lenders.
HDFC is now in league of Reliance Industries Ltd (RIL), which has a market value of $140.74 billion, and Tata Consultancy Services Ltd. (TCS) that has a market capitalization of $114.60 billion.
HDFC Bank now ranks 110th in the list of world’s most valued firms. However, it ranks 26th among most valued banks and financial companies around the world that have a market capitalization of more than $100 billion.
The surge in HDFC Bank’s share price comes after most analysts remain bullish on stock. Investors continued to buy stock in hope that lender would report consistent earnings performance, stable asset quality, steady 20% profit growth and healthy advances growth.
With its capital well above regulatory requirements as well as higher retail focus, financial analysts expect HDFC Bank to deliver strong credit growth going forward. Also higher focus on digitization and productivity along with cost rationalization is likely to result in better profitability growth.
Category: Economy & Banking Current Affairs