HDFC Bank Becomes 1st Indian Bank to Cross Rs5 trillion Market Capitalisation

India’s most-valued lender HDFC Bank Ltd on Thursday crossed Rs5 trillion market capitalisation for the first time, making it only the third Indian company to achieve this milestone. Tata Consultancy Services Ltd (TCS) and Reliance Industries Ltd (RIL) are the other two companies which crossed market capitalisation of Rs5 trillion. RIL remained the most-valued company with a market cap of Rs5.82 trillion, followed by TCS with a market cap of Rs5.57 trillion.

HDFC Bank’s steady 20% profit growth quarter-after-quarter as well as its immunity to the bad loans crises has helped the stock. The bank also reports bad loan ratio below 1%, the lowest among Indian lenders. Thus, investors continued to buy the stocks despite high valuation of close to 4.8 times its expected book value for this fiscal.

Brokerage firm Jefferies India expects that the this is sentiment positive, but the magnitude of impact should be marginal as the gap between current foreign institutional investor (FII) shareholding and upper limit is wide for most banks barring HDFC Bank. In the last 12 months, the stock has gained 42.34%, while the S&P Bankex, the broader gauge of banking stocks, advanced 36.62%.

More Updates :

Wipro Partners With IISc on Robotics & 5G

Centre Introduces Scheme For NBFCs and HFCs

RBI Launches Regulatory Sandbox For Fintech Companies

Flipkart Prepares Take on Amazon With Free Video Streaming Service