HDFC Bank Ltd has crossed the $100 billion mark in terms of market capitalization. With this, it has become the 3rd firm in India to achieve this landmark. The Bank ranks 26th on the list of the most valued banks and financial firms in the world, having a market capitalization of more than $100 billion. By crossing the $100 billion mark, HDFC Bank has also secured a place in the list of “world’s most valued companies” and ranked 110th on this list.
As per Bloomberg data, there are presently 109 companies featuring on this list, all of which have secured a market cap of more than $100 billion. The other two Indian companies that have made their way to this list are: Reliance Industries Ltd, having a market capitalization of $140.74 billion, and Tata Consultancy Services with a market cap of $114.60 billion.
Investors continued to purchase the shares of HDFC with a hope that it will show consistency in its earnings performance, clock a steady profit growth of 20%, will have the stable quality of the asset, and healthy growth of advances.
Analysts are of the view that there is a high probability of HDFC Bank delivering high credit growth. The prediction is in view of the bank, registering capital much higher than regulatory requirements and due to its focus being more on the retail segment. It is also thought that the bank is going to have better profit growth as they are concentrating on strengthening their productivity and digitization in addition to rationalizing the cost.
According to a survey, it was seen that HDFC Bank is targeting India’s semi-urban and rural population; therefore, the concentration of branches in these areas is higher with earning higher revenue and profit.
