HDFC Bank, with a market value of around $151 billion as of July 2023, has ascended to the position of the seventh-largest global lender.
On July 17, HDFC Bank, a private lender, achieved entry into the esteemed $100 billion market-cap club, surpassing Morgan Stanley and Bank of China. The bank's market capitalization reached $151 billion.
With a market value of about $151 billion as of July 2023, HDFC Bank has now secured its place as the world's seventh-largest lender.
HDFC Bank's inclusion in this esteemed group is a result of its successful merger with its parent company, Housing Development Finance Corporation Ltd (HDFC). The merger, effective from July 1, led to the establishment of an entity with a combined market capitalization of approximately $157 billion. This achievement positions HDFC Bank as one of the largest banks globally in terms of market cap, even surpassing prominent global investment firms like Goldman Sachs.
In terms of market capitalization, HDFC Bank ranks behind JPMorgan at $438 billion, Bank of America at $232 billion, the Industrial and Commercial Bank of China at $224 billion, the Agricultural Bank of China at $171 billion, Wells Fargo at $163 billion, and HSBC at $160 billion.
HDFC Bank's impressive financial growth is evident in its performance. The bank achieved an annual revenue of $24.102 billion in 2023, representing a notable 14.02 percent increase from 2022. Over the past ten years, the bank's market capitalization has consistently shown an upward trajectory, rising from $24.29 billion in 2010 to $151.10 billion in 2023.
Furthermore, HDFC Bank recently raised approximately $1.81 billion through a successful US public offering of 17.5 million American depository shares. Additionally, in India, 12.8 million equity shares were made available through HDFC's qualified institutions' placement.
The merged entity of HDFC Bank and HDFC Ltd commenced trading on Monday, July 17, following the delisting of HDFC Ltd shares from the stock exchanges on Friday, July 13.
On July 14, as part of the all-stock merger deal, HDFC Bank allocated 3,11,03,96,492 new equity shares with a face value of Rs 1 each to eligible shareholders of HDFC Ltd. Under this deal, every HDFC shareholder received 42 shares of HDFC Bank for every 25 shares held in the company. As a result, the paid-up share capital of the bank increased to 753,75,69,464.
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