HDFC Bank, India’s largest private lender, briefly crossed a market capitalisation of Rs 14 lakh crore for the first time on Thursday, November 28, as its stock hit a fresh all-time high of Rs 1,836.05.
The bank now ranks as the third most valuable company in India, only behind oil-to-telecom conglomerate Reliance Industries (Rs 17.25 lakh crore) and IT services company Tata Consultancy Services (Rs 15.22 lakh crore).
The stock, however, pared early gains amid profit-taking. As of noon, the stock’s market capitalisation slipped well back below the Rs 14 lakh crore mark. By 12:12 pm, HDFC Bank shares were trading at Rs 1,803.3, down nearly 0.50% from their previous close of Rs 1,811.
Surge Linked to MSCI Rebalancing
The rally in HDFC Bank’s shares has been supported by the recent MSCI Emerging Markets Index rebalancing, which took effect on November 25. Analysts estimate this rebalancing could inject $2.5 billion into Indian equities, with HDFC Bank expected to attract $1.9 billion in foreign institutional investments due to its increased weight in the index.
Stock Performance
HDFC stock gained nearly 5% this week, despite trading in the red on Thursday. In the past month, HDFC Bank shares have climbed 4.8%. Year-to-date, the stock has risen 6%, and over the past year, it has delivered an impressive 18% gain.
Financial Highlights
For the second quarter of FY25, HDFC Bank saw its standalone net profit jump 5.3% year-on-year to Rs 16,821 crore. On the same hand, the bank’s Net interest income (NII) grew 10% to Rs 30,110 crore. Last but not least, the bank’s core net interest margin (NIM) remained steady at 3.46% on total assets.
