TIL Desk/Business/New Delhi/ HDFC Bank is within kissing distance of breaking into the league of 10 most-valued global banks. A stellar 55 per cent rally (in dollar terms) this year has helped the domestic lender improve its standing to 12th from 22nd at the start of the year.
At present, HDFC Bank is valued at $71.2 billion, 1.3 per cent below The Netherlands’ ING Group, the 10th most valuable bank. The domestic lender’s market capitalisation is more than that of marquee global banks such as Barclays, JP Morgan Chase and Credit Suisse.
The gains clocked by HDFC Bank this year are second only to the China Merchants Bank which has seen a 63 per cent spurt in its value. According to market observers, HDFC Bank’s emergence is not only driven by its sound performance, but also dwindling health of some of the global majors, especially the European ones.
For instance, Deutsche Bank, which was once much more valuable than HDFC Bank, has seen its market cap erode to $34.5 billion. Similarly, Royal Bank of Scotland ($44 billion) and Credit Suisse ($41 billion) are now much smaller than HDFC Bank, despite their history and pan-global presence. The size of the balance sheet of these banks however, is much higher than HDFC Bank.
