HDFC Bank Ltd.on Wednesday became the first bank in the Indian history to cross the Rs 8-trillion market capitalisation milestone after its shares hit fresh record high of Rs 1,464 apiece on the BSE in the intra-day deal.

About Company

A subsidiary of the Housing Development Finance Corporation, HDFC Bank was incorporated in 1994, with its registered office in  Mumbai,  Maharashtra,  India.

It has a base of 104,154 permanent employees as of 30 June 2019.

HDFC Bank is India’s largest private sector bank by assets.

It is the largest bank in India by market capitalisation as of March 2020

Third Company

The private lender now stands at third position in the overall market-cap ranking of listed companies, ahead of HDFC 2 Companies are:

  • Reliance Industries
  • Tata Consultancy Services

Market Valuation of this firms

RIL is the most valued firm of India with market capital of ₹13.33 trillion followed by TCS with at ₹10.22 trillion.

HDFC Performance

HDFC Bank’s net profit rose 18% year-on-year to ₹7,513 crore in the quarter ended September, as asset quality remained steady and interest income increased.

The non-performing assets ratio stood at 1.08% against 1.38% under pro-forma basis and 1.36% in the previous quarter.

The lender reported a drop in borrowers availing moratorium to 9% of its loan book, one of the lowest in the industry.

It also reported a further improvement in the collection efficiencies.

Loan book grew by 16% year on year, with corporate advances growing by 26% year on year.

CLSA Prediction

Global brokerage firm CLSA has maintained a “buy” call on the stock and raised the target from Rs 1,525 to Rs 1,700.

CLSA said the macro-environment had improved after the lockdown and a better use of data analytics was leading to lower retail stress against PAT cycles.

Stock Market Impact

The stock price has nearly doubled at the bourses from the low of Rs 739 hit in March 2020, and has climbed 98 per cent to reach its fresh lifetime high.

The stock has surpassed its previous lifetime high of Rs 1,445 hit on November 24, 2020.

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