HDFC Bank Hits Milestone With Market Cap Surpassing Rs 14 Trillion

Over the past six months, HDFC Bank’s stock has outperformed the broader market, climbing nearly 20 per cent compared to the 6.7 per cent rise in the BSE Sensex

HDFC Bank now ranks among India’s most valuable companies, trailing only Reliance Industries (Rs 17.48 trillion) and Tata Consultancy Services (Rs 15.58 trillion), according to BSE data.

Source : PTI

HDFC Bank, India’s largest private sector lender, achieved a significant milestone as its market capitalisation crossed the Rs 14 trillion mark for the first time during Thursday’s intra-day trading on the BSE. The bank's shares soared to a record high of Rs 1,832.75, gaining 1.2 per cent in intra-day trade. This marks the fifth consecutive session of gains for the stock, which has surged 5.2 per cent over this period. Earlier this week, on Monday, the stock surpassed its previous peak of Rs 1,791.90, recorded on July 3, 2024.

Outperforming the Market

Over the past six months, HDFC Bank’s stock has outperformed the broader market, climbing nearly 20 per cent compared to the 6.7 per cent rise in the BSE Sensex. As of 9:29 AM on Thursday, the bank's shares were trading 1 per cent higher at Rs 1,829, with its market capitalisation standing at Rs 13.98 trillion. In contrast, the benchmark Sensex inched up by 0.04 per cent , reaching 80,268.

HDFC Bank now ranks among India’s most valuable companies, trailing only Reliance Industries (Rs 17.48 trillion) and Tata Consultancy Services (Rs 15.58 trillion), according to BSE data.

A Leader in Banking

HDFC Bank has emerged as a robust private sector bank with consistent growth across economic cycles. Post-merger, it is now the second-largest bank in terms of size, boasting a diversified portfolio and a Rs 24 trillion loan book. The bank’s strong return ratios and operational performance continue to command premium valuations.

Since October 20, the stock has surged 9 per cent , following better-than-expected Q2 results for FY25. During the same period, the BSE Sensex has declined by 1.2 per cent .

Strategic Growth Plans

The bank's management has announced plans to restore its credit-deposit (C/D) ratio to pre-merger levels of 86 per cent-87 per cent within two to three years — faster than the initially projected four to five years. This will be achieved by moderating loan growth, particularly in larger ticket sizes. The strategy underscores the bank’s commitment to accelerating growth while maintaining financial stability.

As HDFC Bank scales new heights, it remains well-positioned to leverage emerging opportunities in the banking sector, solidifying its leadership in India’s financial landscape.