HDFC Bank crosses Rs4 trillion in market cap

HDFC Bank is the third after TCS and RIL to cross Rs4 trillion market capitalisation


HDFC non-performing assets stood at 1.05% from 0.94% a year ago while net NPAs rose 0.33% from 0.28% last year same quarter. Photo: Mint
HDFC non-performing assets stood at 1.05% from 0.94% a year ago while net NPAs rose 0.33% from 0.28% last year same quarter. Photo: Mint

Mumbai: India’s most valued bank HDFC Bank Ltd on Thursday crossed Rs4 trillion market capitalisation for the first time, making it only the third Indian company to achieve this milestone.

In intraday, the stock gained as much as 1.6% to hit a fresh high of Rs 1572.30 a share. However, the stock pared some its gains and closed at Rs 1554 on BSE, up 0.4% from previous close. The stock gained for eight consecutive sessions and rose 8% in this period. So far this year, it gained 29%. India’s benchmark Sensex index fell 0.34% to 30,029.74 points.

Tata Consultancy Services Ltd (TCS) and Reliance Industries Ltd (RIL) are the other two companies which crossed market capitalisation of Rs4 trillion. RIL remained the most valued company with a market cap of Rs4.57 trillion, followed by TCS with a market cap of Rs4.53 trillion.

On 21 April, the bank reported 18.3% rise in net profit to Rs3,990 crore for the March quarter from Rs3,374 crore a year ago. Net interest income rose 21.5% on the back of a loan book growth of 19.4%.

“Considering the healthy balance sheet growth and superior quality, the bank is well placed to deliver consistently with margin leadership and robust return ratios. Therefore, the bank remains a portfolio stock with premium valuation to continue,” said ICICI Direct, in a 24 April note.

Its gross non-performing assets stood at 1.05% from 0.94% a year ago while net NPAs rose 0.33% from 0.28% last year same quarter.

“It is one of our preferred picks among retail lenders, and we remain constructive owing to its pristine asset quality, retail franchise and best in class profitability,” said broking firm Axis Capital, in a report to its investors.

Of the analysts covering the stock, 48 have a “buy” rating, four have a “hold” rating, while two have a “sell” rating, shows Bloomberg data.

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