HDFC Bank crosses milestone
HDFC Bank, the country’s most valuable lender, on Wednesday achieved a key milestone on the bourses — when the market capitalisation of its share crossed the Rs 6 trillion (lakh crore) mark.
The private sector bank becomes the third company after Reliance Industries and Tata Consultancy Services to achieve this feat.
HDFC Bank shares on Wednesday hit a record high. On the BSE, the scrip finished with gains of 2.56 per cent, or Rs 55.50, at Rs 2,226.10.
During intra-day trades, the share hit a new 52-week high of Rs 2,233. The positive close led to its market capitalisation hitting Rs 6,05,932.79 crore on the BSE.
On the other hand, the market cap of HDFC is around Rs 3.36 trillion (lakh crore). Together, they are valued at around Rs 9.5 trillion.
One of the key strength of the bank is strong asset quality. However, during the third quarter of this fiscal, there was a marginal rise in the gross non-performing assets (NPAs) of the lender in absolute terms. The gross NPA came in at Rs 10,902.86 crore compared with Rs 10,097.73 crore in the preceding quarter and Rs 8,234.88 crore in the same period of last year.
The percentage of gross NPAs to gross advances was at 1.38 per cent against 1.33 per cent on a sequential basis.
Brokerages also remain positive on the stock. “Backed by the robust underwriting skills and prudence and the consistent track record of growth and profitability, HDFC Bank is our top pick amongst the private sector banks,” brokerage Anand Rathi said in a note.