As the stock price of the biggest private sector lender reached a record high on the BSE, HDFC Bank’s market capitalization (market cap) crossed the Rs 14 trillion threshold for the first time ever during Thursday’s intraday trading.
In intraday trading on the BSE, HDFC Bank’s shares rose 1.2% to a new high of Rs 1,832.75. For the fifth consecutive session, the stock was trading higher, and it has already gained 5.2%. The stock surpassed its previous peak of Rs 1,791.90, which was reached on July 3, 2024, on Monday.
HDFC Bank has outpaced the market in the last six months, rising by about 20%, while the BSE Sensex has increased by 6.7%. At 9:29 a.m., HDFC Bank was up 1% at Rs 1,829, with a market capitalization of Rs 13.98 trillion. The benchmark index, by contrast, increased by 0.04 percent to 80,268.
Reliance Industries leads the list with Rs 17.48 trillion market worth followed by Tata Consultancy Services at Rs 15.58 trillion, the BSE data reveals.
One of the top private sector banks, HDFC Bank has demonstrated steady growth and operational performance throughout multiple cycles. Following the merger, the bank’s broad portfolio has made it the second largest in terms of size. Premium valuations are the outcome of the bank’s sustained higher return ratios. With a loan book over Rs 24 trillion, HDFC Bank is the biggest private sector bank.
Following the release of better-than-expected July-September quarter (Q2) results for the fiscal year 2024-25 (FY25), HDFC Bank has increased by 9% since October 20. In the same time frame, the BSE Sensex has decreased by 1.2%.
By calibrating loan growth, especially in higher ticket sizes, the management intends to return the credit-deposit ratio (C/D) to the pre-merger level of 86–87 percent in two to three years, which is faster than the original four to five-year goal. By reducing its loan-to-deposit ratio more quickly, the bank is putting itself in a strategic position to seize future growth possibilities.
Analysts at ICICI Securities believe that while focusing on raising the C/D ratio is perceived to limit growth, the bank’s long-term positioning will be steadily improved by resilience in terms of asset quality and redirecting strength in shoring up liabilities franchise. The brokerage firm has a target price of Rs 1,900 per share and keeps its rating on HDFC Bank at ‘Hold’.
According to a result update from analysts at Geojit Financial Services, HDFC Bank’s Q2FY25 performance was characterized by steady margins and strong deposit growth, putting the bank in a position to take advantage of opportunities for credit growth and economic improvements through its continued efforts to optimize its loan-deposit ratio and gradually replace high-cost borrowings.
An improved portfolio mix and the increase of the retail loan mix are anticipated to propel the bank’s future performance, resulting in a better credit-deposit ratio and stable profits over the medium run. Based on 2.6x FY26E BVPS, the brokerage firm reaffirmed its ‘BUY’ rating on the stock with a revised target price of Rs 1,931, stating that they are still enthusiastic about the company’s long-term prospects.
A draft red herring prospectus (DRHP) for an IPO of Rs 12,500 crore has been submitted to the Securities and Exchange Board of India (Sebi) by HDB Financial Services, the non-banking finance division of HDFC Bank. The remaining Rs 2,500 crore would be raised by the lender through a new issuance, while HDFC Bank is selling shares worth Rs 10,000 crore through an offer for sale (OFS). 94.36% of HDB Financial Services is owned by HDFC Bank. By September 2025, HDB Financial Services must list in accordance with Reserve Bank of India (RBI) regulations.
