HDFC Bank scales Rs 5 lakh crore market cap mark a day ahead of its Q3 earnings

 BusinessToday.in        Last Updated: January 18, 2018  | 14:42 IST
HDFC Bank scales Rs 5 lakh crore market cap mark a day ahead of its Q3 earnings

Private sector lender HDFC Bank on Thursday became the first Indian bank to cross the Rs 5-lakh crore market capitalisation, a day ahead of announcement of its Q3 earnings.

The bank has become only the third Indian company to achieve this milestone.

At 12:21 pm, the stock was trading 2.59% or 49 points higher at 1940.10 on BSE. Its market capitalisation stood at Rs 5.02 lakh crore. On an year to date basis, the stock has gained 4.43% or 82 points on BSE. During the last one year, the HDFC Bank stock is up 56.27% or 700 points.

With this humongous feat, the bank has entered the coveted league of top five firms by market capitalisation on BSE. The bank stands at third position in terms of market cap on BSE. Reliance Industries (RIL) and TCS are the only two firms above the private lender in the ranking.

The bank has conquered the new peak ahead of announcements of its Q3 earnings on January 19.

The bank reported Rs 3,455 crore in net profit for the quarter ending September (Q2) last year. During the first quarter of this fiscal, the lender logged Rs 3,893 crore in net profit.

Its total income rose to Rs 23,276.2 crore in Q2 against Rs 19,970.9 crore reported in the corresponding quarter of last fiscal.  Profit before tax for the quarter was up 20.2 percent to Rs 6,341.7 crore.

Its parent mortgage lender HDFC is on fifth position in terms of market capitalisation (Rs 3.03 lakh crore).

The HDFC Bank stock is up 4% in the last four trading sessions after HDFC said it plans to raise up to Rs 13,000 crore via QIP and preference shares.

On January 13, HDFC said its board has approved raising up to Rs 13,000 crore primarily to maintain its holding in its banking arm and enter segments such as stressed assets and health insurance. This will be the first equity raising by the country's largest pure-play mortgage lender in over a decade.

The HDFC stock too has gained nearly 9% during the last four trading sessions post the announcement.

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