HDFC Bank enters $100-billion market-cap club, surpasses Morgan Stanley and Bank of China

Private lender HDFC Bank entered the coveted $100 billion market-cap club on July 17, becoming the seventh largest global lender. The bank's market capitalisation reached $151 billion, surpassing that of Morgan Stanley and Bank of China.

With a market value of approximately $151 billion as of July 2023, HDFC Bank now stands as the world's seventh-largest lender.

The bank's entry into this prestigious club follows its successful merger with its parent company, the Housing Development Finance Corporation Ltd (HDFC). The merger, which came into effect on July 1, resulted in the creation of an entity with a combined market capitalisation of around $157 billion. This makes it one of the world's largest banks by market cap, even outpacing major global investment firms like Goldman Sachs.

When it comes to market cap, HDFC Bank stands behind JPMorgan at $438 billion, Bank of America at $232 billion, the Industrial and Commercial Bank of China at $224 billion, the Agricultural Bank of China at $171 billion, Wells Fargo at $163 billion, and HSBC at $160 billion.

HDFC Bank's impressive performance is reflected in its financial growth. The bank's annual revenue for 2023 was $24.102 billion, marking a 14.02 per cent increase from 2022. Over the past decade, the bank's market cap has shown a steady upward trend, increasing from $24.29 billion in 2010 to $151.10 billion in 2023.

Moreover, HDFC Bank recently raised approximately $1.81 billion through its successful US public offering of 17.5 million American depository shares. An additional 12.8 million equity shares were made available through HDFC's qualified institutions' placement in India.

The HDFC Bank stock started trading as a merged entity on Monday, July 17. Shares of HDFC Ltd were delisted from the stock exchanges on Friday, July 13.

On July 14, the bank allotted 3,11,03,96,492 new equity shares of face value of Rs 1 each, to eligible shareholders of HDFC Ltd under the all-stock merger deal where every HDFC shareholder got 42 shares of HDFC Bank for every 25 shares held in the company. The paid-up share capital of the lender increased to 753,75,69,464.

Also Read: HDFC Bank Q1 results: Profit jumps 30% to Rs 11,952 crore