HDFC bank crosses $100 billion market-cap post merger; becomes world's 7th largest lender

India's largest private sector lender HDFC bank's market capitalisation touched $151 billion, becoming the 7th largest lender in the world. This comes days after HDFC Ltd merged with it, in a $40 billion deal.

HDFC bank has now joined the exclusive club of companies with a market capitalisation of $100 billion. With a valuation of $151 billion, the bank is now bigger than Morgan Stanley, Goldman Sachs and Bank of China.

Meanwhile, brokerage Jefferies has forecasted a profit CAGR of 17% over FY23-26, ROA of 1.9% & ROE of 16% in FY25. The brokerage has also resumed coverage on HDFC bank with a BUY rating and a target price of Rs 2,100.

The shares of HDFC LTD stopped trading on the share market on 13th July since July 12 was the record date for determining eligible shareholders for share allotment.

On Friday, the bank allotted over 3 billion new equity shares of face value Rs 1 - where every HDFC shareholder got 42 shares of HDFC Bank for every 25 shares they held in the company. By this the paid-up share capital of the bank increased to over 7 billion shares.

In terms of market value on the BSE, HDFC Bank is the third largest Indian company that follows Reliance and TCS.

Meanwhile, HDFC bank reported a 30% jump in its net profit to Rs 11,952 crore for the first quarter of FY24. The net revenue grew 26.9% to Rs 32,829 crore. The net interest income too jumped 21.1% to Rs 23,599 crore.