How HDFC Bank became the 3rd Indian company to cross $100 billion market capitalization.

HDFC bank shares recently hit a new high of ₹ 1305.50. This makes the bank only the third Indian company to cross the $100 billion market capitalization. The other two companies with over $ 100 billion valuations are Reliance Industries Limited ($ 140.74 billion in market cap) and Tata Consultancy Services ($ 114.60 billion). 

Quick facts:

1. HDFC bank now stands at 110 among the most valued companies in the world.
2. HDFC bank has been ranked 26th among the most valued firms and organizations around the world, having a market cap of more than $ 100 billion.
3. The local shares of HDFC bank have gained 20% in the last one year.

The growth of HDFC Bank has been consistent at 20-22%. 

With its capital well above regulatory requirements, analysts expect HDFC Bank to deliver strong credit growth going forward. The surge in the HDFC Bank's share price comes after most analysts remain bullish on the stock considering the lender's strong focus on productivity and digitization along with cost rationalisation which can result in better profitability and credit growth going forward.

According to Bloomberg Intelligence, the credit for this success goes to the bank’s encouraging tendency to open branches in the rural and the semi-urban areas. This adds to the achievement with higher revenue and profits. Bloomberg points out that till September 2019, around 50% of the bank’s branches were outside the major metropolitan and urban centers. The analysts expect that HDFC Bank will deliver strong credit growth ahead with the capital above regulatory requirements.

With its market cap above $ 100 billion,
based on the price of its American Depositary Receipts, HDFC Bank is valued at more than the combined market value of Japan’s No.1 financial banking group, Mitsubishi UFJ Financial, and the top German lender, Deutsche Bank. Only banks in the US, China, the UK and Canada are now valued more than India’s largest private sector lender.

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Cedrus Wealth Partners
Pune, Maharashtra.
www.cedruswealth.com