HDFC Bank Joins Rs 15 Lakh Crore Club, Becomes India’s Third Most Valuable Company

Reliance and TCS Only Other Firms to Breach the Landmark Market Capitalisation Threshold

In a landmark development for Indian equity markets, HDFC Bank on April 22 crossed the Rs 15 lakh crore market capitalisation threshold, becoming only the third Indian company ever to achieve this milestone. The development places the private sector banking giant in an elite league, alongside Reliance Industries and Tata Consultancy Services (TCS), which previously reached this benchmark.

The milestone underscores HDFC Bank’s robust market positioning, bolstered by solid financial performance in Q4FY25, renewed investor interest in banking stocks, and favorable macroeconomic tailwinds driven by recent monetary easing by the Reserve Bank of India (RBI).

Highlights:

• HDFC Bank hits Rs 15 lakh crore market cap, joining Reliance and TCS.

• Share price rose to Rs 1,962, up 1.8% as of 3:10 PM on April 22.

• Achieves milestone post-Q4FY25 earnings beat and positive market sentiment.

• Becomes India’s most valuable private sector lender by a wide margin.

Earnings-Driven Momentum Powers Market Cap Surge

HDFC Bank’s surge in valuation comes on the back of a strong March quarter performance, wherein the bank reported a 6.6 percent year-on-year increase in standalone net profit to Rs 17,616 crore, compared to Rs 16,512 crore in Q4FY24. This performance exceeded Street estimates and marked a steady uptick in operational efficiency despite a challenging credit environment.

While the bank’s total income remained broadly flat at Rs 89,488 crore, compared to Rs 89,639 crore in the year-ago quarter, interest income rose sharply to Rs 77,460 crore, up from Rs 71,473 crore in Q4FY24. This improvement reflects better asset yields and disciplined loan book management, especially in a volatile interest rate environment.

In tandem, the bank’s balance sheet expanded to Rs 39.10 lakh crore as of March 31, 2025, registering a substantial increase from Rs 36.17 lakh crore a year earlier. Analysts believe this expansion reflects sustained deposit mobilization, prudent risk-weighted asset growth, and increasing consumer loan demand.

Highlights:

• Q4FY25 profit rose 6.6% YoY to Rs 17,616 crore.

• Interest income up 8.4% YoY, reaching Rs 77,460 crore.

• Balance sheet grew to Rs 39.10 lakh crore, vs Rs 36.17 lakh crore in FY24.

• Margins supported by effective loan mix and cost optimization.

Strategic Positioning and Outlook Signal Long-Term Strength

Looking ahead, HDFC Bank’s management has signaled an optimistic outlook for the medium term. In the bank’s post-earnings conference call, Chief Financial Officer Srinivasan Vaidyanathan stated that the bank expects its loan growth to exceed industry averages by FY27, although precise projections were not disclosed.

This growth ambition aligns with broader market expectations of a sustained pickup in private sector credit expansion, especially in retail and SME segments. The bank’s focus on asset quality, capital adequacy, and digital transformation positions it well for long-term leadership, especially amid increasing competition in consumer and corporate lending.

Analysts at Nuvama Institutional Equities termed HDFC Bank’s asset quality “best in class,” citing a continued decline in fresh non-performing assets. This reinforces investor confidence in the lender’s underwriting and risk management frameworks, even in a high-volatility macroeconomic backdrop.

Highlights:

• Bank targets loan growth outpacing industry average by FY27.

• Asset quality remains robust, with declining fresh NPAs.

• Nuvama lauds HDFC’s risk management as “best in class.”

• Long-term growth supported by digital strategy and liquidity headroom.

Market Momentum and RBI Liquidity Support Enhance Banking Sector Valuations

HDFC Bank’s Rs 15 lakh crore valuation milestone comes at a time when the broader banking sector is undergoing a rerating, driven by favorable policy cues from the RBI. Under Governor Sanjay Malhotra, the central bank has introduced a raft of liquidity-enhancing and credit-boosting measures, including two repo rate cuts and relaxation of LCR norms, unlocking more deployable capital for lending institutions.

The Bank Nifty index surged to an all-time high of 55,961 on April 22, with HDFC Bank, ICICI Bank, Axis Bank, and SBI emerging as key contributors to the Nifty’s broader recovery. HDFC Bank alone contributed over 300 points to the recent 2,000-point rally in the Nifty 50, underscoring its market-moving stature.

With investor sentiment now firmly tilted toward interest rate-sensitive stocks, HDFC Bank is likely to remain at the forefront of this trend, especially as earnings visibility and balance sheet stability improve over the coming quarters.

Highlights:

• Sector supported by RBI liquidity measures and rate cuts.

• HDFC Bank key driver of Nifty’s 2,000-point rebound in April.

• Bank Nifty at record high; sentiment shifts in favor of lenders.

• Policy backdrop continues to favor asset-heavy institutions like HDFC.