HDFC Bank Stock Hits Record High, Market Cap Crosses Rs 14 Trillion Milestone

HDFC Bank’s stock surged to an all-time high of Rs 1,832.75 on Thursday, marking a significant milestone as its market capitalization crossed the Rs 14 trillion mark for the first time. The stock gained 1.2% during intra-day trade, extending its upward momentum to a fifth consecutive session, with a total gain of 5.2% over this period.

This surge follows a period of strong performance, with HDFC Bank outpacing the broader market by rising nearly 20% over the past six months, compared to a 6.7% rise in the BSE Sensex. At 09:29 AM, HDFC Bank’s market cap stood at Rs 13.98 trillion, placing it among the largest players in India’s financial sector.

The bank’s stock performance reflects the growth momentum driven by its consistent operational performance, post-merger expansion, and strategic initiatives to optimize its loan-to-deposit ratio. HDFC Bank is now the second-largest private sector lender by size, with a loan book of Rs 24 trillion.

Since reporting strong Q2FY25 results, HDFC Bank’s stock has surged 9%, driven by better-than-expected performance. This includes stable margins and robust deposit growth, which have positioned the bank well to capitalize on economic improvements and rising credit demand.

Analysts have expressed optimism about HDFC Bank’s future, with firms like ICICI Securities maintaining a ‘Hold’ rating and a target price of Rs 1,900 per share, while Geojit Financial Services has a ‘BUY’ recommendation, setting a revised target price of Rs 1,931.

Additionally, HDFC Bank’s non-banking arm, HDB Financial Services, has filed for an initial public offering (IPO) worth Rs 12,500 crore, further enhancing the parent company’s growth potential.

HDFC Bank’s ability to maintain superior return ratios and navigate through various market cycles has bolstered investor confidence, positioning it for continued success in the coming years.