MUMBAI: HDFC SA Bank saw its market capitalization cross Rs 9 trillion on Thursday, after the lender’s shares hit a record Rs 1,635 each in the first BSE trades.
As of 9:30 am, the script was trading at Rs 1,630 per share, up 1.5% from its previous close, while the benchmark Sensex was up 1% to 51,300 points. Since the start of the year, HDFC Bank shares have risen 13.5%.
With a market capitalization of Rs9.01 trillion, it is the third company in the country to take this step.
Billionaire Mukesh Ambani’s Reliance Industries Ltd is India’s most valued company with a market cap of Rs 13.25 trillion, followed by TCS at Rs 11.17 trillion.
HDFC Bank shares rose after the lender reported better-than-expected earnings for the December quarter on improving net interest margins, higher non-interest income and stability of asset quality.
Analysts also expect the bank’s digital initiatives and increased economic activity to boost consumer credit growth. This, combined with a good dynamic in business disbursements, will keep its commercial dynamic ahead of that of the industry.
HDFC Bank’s net interest income increased 15.1%, while loan growth was 16% and recorded an improvement in NIM of 4.3%. Base charges and commission income increased 26% sequentially, provision expense was lower at Rs 3,414 crore compared to Rs 3,703 crore a quarter ago, while profit increased by 16 , 6% sequentially.
Gross non-performing assets (NPAs) and net NPAs improved 27 basis points and 8 basis points qoq to 0.8% and 0.1%, respectively, mainly due to the court’s status quo supreme on the recognition of bad debts.
“HDFC Bank continued to deliver stable, online performance amid an economic recovery. Despite a cautious approach to NPA’s risk management, the bank was able to maintain profitability. pick and we believe it demands a higher valuation in the current uncertain environment facing the banking industry, “Karvy Stock Broking said in a report dated Jan. 28.
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