New Delhi | November 28, 2024
HDFC Bank, India’s largest private sector lender, reached a historic milestone today as its market capitalization surpassed the ₹14 lakh-crore mark. This achievement was driven by a 1.4% rise in its share price, which touched an all-time high of ₹1,836.05 during early trading.
The remarkable surge in share price saw 93,000 shares being traded, generating a turnover of ₹16.92 crore. As per data from the Bombay Stock Exchange (BSE), the stock has a price-to-earnings (PE) ratio of 20.98x, reflecting strong investor confidence in the bank’s performance.
Steady Growth in Financial Performance
This milestone follows a robust financial performance by HDFC Bank in the quarter ending September 2024. The lender reported a 5.3% year-on-year increase in standalone net profit to ₹16,820 crore, compared to ₹15,976 crore in the same quarter last year. Sequentially, the profit after tax grew by 4%.
Key financial highlights for the quarter included:
- Net Interest Income (NII): ₹30,110 crore, up 10% from ₹27,390 crore a year earlier.
- Core Net Interest Margin (NIM): 3.46% on total assets and 3.65% based on interest-earning assets.
- Other Income: ₹11,480 crore, a 7.2% increase from ₹10,710 crore in the previous fiscal.
- Operating Expenses: ₹16,890 crore, reflecting a 9.7% rise from ₹15,400 crore a year ago.
Strong Momentum in Market Performance
HDFC Bank's rally comes amidst a broader market surge, with several other major players from the Sensex pack, including Adani Ports, ITC, State Bank of India, Hindustan Unilever, Tata Motors, IndusInd Bank, and Tata Steel, also registering gains.
The bank’s consistent growth in profitability, coupled with strong fundamentals such as improving net interest income and stable NIMs, has made it a preferred choice among investors. The milestone underscores HDFC Bank’s position as a leader in India’s banking sector.
Looking Ahead
With its robust financial metrics and market confidence, HDFC Bank continues to strengthen its position as a benchmark for the industry. As India’s financial sector evolves, HDFC Bank’s performance will likely play a significant role in shaping market trends and inspiring investor trust.
No comments