HDFC Bank’s Is India’s First Bank To Touch Rs.5 Lakh Crore Market Cap
HDFC Bank starts the New Year with a bang, while in past one year the share prices of the bank has increased by 50%, which is more than the Sensex, on January 18, 2018, the bank reached the whopping amount of Rs. 5 lakh crores market cap. This company became the third organization in India to reach this mark. The other two companies are Reliance Industries and Tata Consultancy Services (TCS).
HDFC Bank’s Market cap (also known as the market capitalization) stood at Rs 5,03,196.27 crores in the afternoon session of the share market. With this HDFC Bank also became the first bank to cross the landmark of 5 lakh crores. The bank also made another record by hitting a highest mark in one year, it reached Rs 1,953.75 on Thursday, 3.31% stood as the day’s highest.
The BSE Sensex and NSE Nifty also reached high scales on Thursday due to the rising share prices of the banks. Besides HDFC Bank, IndusInd Bank, Yes Bank and Kotak Mahindra were the major gainers in the share market, each with almost 1% to 2% hike. This might be due to the decision of the government to increase the foreign investment limits for the banks. Government is expected to increase the foreign investment in banks by 100% and in public lending by 49%. The government also is supposed to trim the additional market borrowings by 60% by end of the financial year 2017–2018.
In the afternoon session, Sensex was up by 200 points and Nifty by 10,800. The secret behind the immense success of HDFC Bank in the share market is supposed to be its steady growth rate and low levels of non-performing assets (NPAs). The bank is supposed to strengthen its position in the market when the above-mentioned offerings of the government are implemented in the near future.