HDFC Bank Ltd reached the market capitalization of $100 billion on Thursday, becoming only the country’s third-largest business to reach this milestone.
The company is now in Reliance Industries Ltd’s group, which has a $140.74 billion market cap, and Tata Consultancy Services, which has a $114.60 billion market cap.
HDFC Bank is now ranked 110th in the most admired companies in the world with this. There are currently 109 companies in the ranking, according to Bloomberg statistics, with a market cap of over $100 billion.
HDFC Bank ranks 26th among the most valuable banks and financial firms in the world with a market cap of over $100 billion.
Investors continued to buy the stock in the expectation that the company will post good earnings results, steady profit growth of 20 percent, stable quality of assets, and healthy growth.
The stock traded on the BSE at some 0.4 percent higher, though Sensex fell to 41519.69 points by 0.09 percent. The index has increased by 22 percent in the last 12 months, while the S&P Bankex, the broader gage of banking stocks, has risen by almost 20 percent.
The analyst expects HDFC Bank to offer strong credit growth in the future, with its resources well above regulatory requirements and higher retail emphasis. Further emphasis on efficiency and digitization along with cost rationalization is also likely to lead to better growth in profitability, the analyst added.
According to Bloomberg reports, 50 of the analysts covering the stock have a’ buy’ rating, five have a’ hold’ rating, while one has a’ sell’ rating.
HDFC Bank’s rising concentration of branches in India’s semi-urban and rural areas position it for higher revenue and profit, according to Bloomberg Intelligence. Around 52% of the branches of the bank were outside the major metropolitan area.
Recently, HDFC Bank, was ranked No. 1 for the sixth year in a row, has proved the benefits of keeping a forward-thinking and innovative perspective with a continuous focus on meeting its customers ‘ evolving requirements. The bank rose 5 percent in brand value to $22.7 billion with fresh economic goods, continuing drive towards digital banking, and fresh branches set-up across the nation. This contrasts positively with the top 20 worldwide banks ‘ 8% decrease in value (BrandZ Top 100 Most Valuable Global Brands Report, June 2019).
