HDFC Bank’s market capitalisation crossed the Rs 14 lakh crore mark for the first time in intra-day trades as the stock price of the largest private sector lender hit a record high on the BSE.
Shares of India’s largest private bank rose as much as 1.13% to Rs 1,832.70 apiece. The stock has risen 19.68% in the last 12 months. On Thursday, share prices of HDFC stock ended 1% lower at Rs 1,792.90 on the Bombay Stock Exchange.
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The positive momentum around the stock was seen as MSCI November rebalancing came into effect early this week. The Indian equities are expected to see net inflows of $2.5 billion from foreign institutional investors (FIIs) as part of the Morgan Stanley Capital International (MSCI) indices’ quarterly rebalancing.
HDFC Bank, in particular, was in focus due to the anticipated increase in its weightage, which was expected to bring in an estimated $1.88 billion of passive inflows. MSCI had announced this weightage adjustment earlier this year, implementing it in two stages.
Since October 20, HDFC Bank has surged 9% after the lender reported robust Q2 results for FY25.
The bank plans to bring back the credit-deposit ratio (C/D) to the pre-merger level of 86-87% within two to three years, faster than initially planned by calibrating loan growth, particularly in larger ticket sizes.
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Meanwhile, HDB Financial Services, the non-banking finance arm of HDFC Bank, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of Rs 12,500 crore. Of this amount, HDFC Bank is selling shares worth Rs 10,000 crore through an offer for sale (OFS), while the remaining Rs 2,500 crore will be raised through a fresh issue by the lender. HDFC Bank holds a 94.36% stake in HDB Financial Services. Reserve Bank of India (RBI) guidelines require HDB Financial Services to be listed by September 2025.
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