HDFC Bank, India’s largest private lender, saw its market capitalization surpass ₹14 lakh crore for the first time on November 28, 2024. The bank’s stock reached a new high of ₹1,836.05, marking a 1.4% gain in early morning trade. HDFC Bank is now India’s third most-valuable listed company, trailing behind IT major TCS, with a market cap of ₹15.60 lakh crore, and RIL, with a market cap of ₹17.50 lakh crore.
The surge in performance is largely attributed to MSCI rebalancing, which took effect on Monday, November 25. Analysts project an influx of around $2.5 billion into Indian markets, with HDFC Bank expected to receive a significant portion of this capital. As part of the rebalancing, HDFC Bank’s weight in the MSCI Emerging Markets (EM) Index is set to rise, potentially bringing in $1.9 billion in foreign institutional investor (FII) investments, according to estimates by Nuvama Alternative Research.
In the last month, HDFC Bank’s stock is up 4.8%, and on a year-to-date (YTD) basis, it has gained 6%.
HDFC Bank reaches market cap milestone
Over the past year, the stock has surged 18%.
The bank reported a 5.3% increase in standalone net profit to ₹16,821 crore in the second quarter of FY25, up from ₹15,976 crore in the same quarter last year. HDFC Bank’s net interest income (NII), which is the difference between interest earned and paid, grew by 10% to ₹30,110 crore, compared to ₹27,390 crore the previous year. The bank’s core net interest margin (NIM) for the September quarter stood at 3.46% on total assets and 3.65% on interest-earning assets, compared to 3.47% and 3.66%, respectively, in the previous June quarter.
The bank reported interest income of ₹74,017 crore for the quarter, up from ₹67,698 crore in the same period last year. However, the stock pared gains and was trading 0.3% lower at ₹1,806.30 apiece at 11:20 a.m. amid declines in technology stocks like Infosys, Tech Mahindra, Tata Consultancy Services, and HCLTech. HDFC Bank’s financial and stock market performance underscores its strong position in the banking sector and its growing influence in the broader financial market.
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