HDFC Bank's market cap crosses Rs5,00,000 cr as shares spurt

Private sector lender HDFC Bank saw its market capitalisation crossing Rs5,00,000 crore after the share price hit a new high in morning trade today.

The HDFC Bank scrip was trading at Rs1,949 in the morning, up 3 per cent from yesterday's close, which took its market capitalisation to Rs5,04,000 crore

HDFC Bank has emerged the first Indian bank to cross the Rs5,00,000-crore market capitalisation. It is also India's third corporate entity to hit the Rs500,000-crore milestone after Reliance Industries (RIL) and Tata Consultancy Services (TCS).

At that time, RIL had a market-cap of Rs5,84,000 crore, followed by TCS with a market-cap of Rs5,50,000 crore.

HDFC Bank has gained 4 per cent in the past four trading sessions, after the board of its parent company Housing Development Finance Corporation (HDFC) approved a proposal to raise Rs13,000 crore through a combination of a preferential allotment and qualified institutions placement (QIP).

"The key objective of raising capital is to participate in the preferential issue of HDFC Bank up to an amount not exceeding Rs8,500 crore. This would enable the Corporation to maintain its current shareholding in HDFC Bank," HDFC said in a press release.

Shares of HDFC also hit a new high of Rs1,917, up 3 per cent, extending its past one week's 8 per cent gain on BSE. HDFC has a market-cap of Rs3,05,00 crore, as per stock exchange data.

HDFC Bank is schedule to announce the unaudited financial results for the quarter ending 31 December 2017 (Q3FY18) on Friday, 19 January 2017.

HDFC Bank has been recording a steady 20 per cent profit growth quarter-after-quarter. With a bad loan ratio below 1 per cent, HDFC Bank also has the lowest non-performing loans among Indian banks.