HDFC has just Become the Third Indian Company After Reliance and TCS to Reach a Market Value of More Than ₹6 Trillion

On March 13, an increase in HDFC Bank’s stock price led the lender to exceed the market value of ₹ 6 trillion, making it the third Indian company to do so after Reliance Industries and Tata Consultancy Services of Mukesh Ambani, who crossed the October 2017 and April 2018 brand, respectively.

HDFC Bank has been in a remarkable race in recent times. The bank’s shares have increased in each of the last five trading sessions, with a jump of 6% to a historical high of ₹ 2,227.40.

At the same time, the Nifty Bank Index reached an all-time high of almost 29,000 points this morning.

The greatest enthusiasm for shares in HDFC Bank is due to an announcement that the bank will meet on April 20 to review its results for fiscal year 2018-19. The bank started as a housing finance company in 1977, before starting to operate as a commercial bank scheduled in 1995 as part of the RBI campaign to liberalize India’s banking sector.

In the last year, shares of HDFC Bank have increased by 19%. At a time when India’s banking sector has seen profits fall due to higher provisions for bad loans, HDFC has seen a steady increase in profits of 20% in recent years.

The bank published a solid earnings report for the quarter ending in December, with 20% growth in earnings and a poor credit ratio of less than 1.5%.

In February, CLSA, a global brokerage, cataloged the bank as one of its best bets in India’s banking sector, citing its healthy growth and growing market share.

The lender looks like it will be the most valuable bank in India for a long time. The second largest bank by market capitalization is ICICI, which has a market value of ₹ 2.52 billion.

However, HDFC Bank still has miles to go if it wants to catch up with Reliance Industries, which has a market value of ₹ 8.52 billion, and TCS, with ₹ 7.49 billion.

In July 2018, Reliance Industries beat TCS to become the most valuable company in India, with a market capitalization of ₹ 7.46 trillion compared to ₹ 7.39 trillion of the latter. At that time, HDFC Bank had a market value of ₹ 5.74 trillion.