The difference in the market cap of private sector bank hdfc in india and American investment bank Goldman Sachs is continuously decreasing. While the market capital of hdfc bank Limited has reached Rs 14.69 lakh crore (17628 crore dollars). At the same time, the market capital of Goldman Sachs is Rs 14.93 lakh crore (17916 crore dollars).
Amazing rise in the bank's stock
hdfc Bank's market cap has jumped from its 52-week low of Rs 1,426.80 in april 2024 to almost equal and now its share price is close to reaching Rs 2000. According to a report by IIFL Finance Limited, hdfc Bank's stock has seen a tremendous rise, which is about 34 percent above its 52-week low, which is the effect of strong quarterly results, strategic balance sheet management and positive market sentiment.
These are also the reasons for the rise in shares
According to another report by Nuvama Wealth and Investment Limited, another reason for the rise in the bank's stock is that after the merger with Housing Development Finance Corporation (HDFC Limited) in 2023, the bank focused on reducing the challenges related to deposits. This also led to a rise in the shares of the bank. The loan portfolio of the bank has also increased significantly due to this merger. However, the deposit base has remained very low in comparison, due to which the loan-to-deposit ratio (LDR) was 104 percent in march 2024. After this, the bank again focused on raising deposits, due to which the LDR has come down to 96.5 percent by march 2025.
LDR level will be reduced
The bank's CFO Srinivasan Vaidyanathan has said that the bank's management expects the LDR to return to the pre-merger level of 85-90 percent with Housing Development Finance Corporation by FY27.
According to Nuvama's report, the bank has taken good advantage of the improvement in systematic liquidity and the reduction in repo rate. This will help in keeping the net interest margin stable, which is estimated to reach 3.5-3.6 percent by FY27 as high-cost borrowing is ending and the loan mix is shifting towards high-yield retail assets. Nuvama has estimated the bank's deposit growth to grow at a compounded growth rate (CAGR) of 15 percent between FY25 and FY27.
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