HDFC Bank Joins Reliance, TCS in Rs 15 Lakh Crore M-Cap Club

India's largest private lender, HDFC Bank, has joined Reliance Industries and Tata Consultancy Services in the Rs 15 lakh crore market capitalisation club after its shares rose 1.78% to Rs 1,961.

The bank becomes the third Indian company to achieve this milestone. During the trading session, HDFC Bank's stock rose as much as 2%, and its current market capitalisation stands at Rs 15,01,289.37 crore.

The stock rally comes on the back of strong quarterly results for the quarter ending March 31, 2025. In the last five days, the bank’s shares have gained as much as 4.72%.

HDFC Bank Q4 Buzz

Investor sentiment on Dalal Street turned bullish after the bank announced that its profit after tax (PAT) rose 7% year-on-year to Rs 17,616 crore for Q4 FY25. During the quarter, the bank’s loan growth picked up significantly, rising 5% YoY, while net interest margins (NIM) expanded by 10 basis points, supporting a 10% YoY growth in net interest income.

Operating expenses were well managed, and provisions remained low, contributing to strong profitability, according to JM Financial, which has issued a "Buy" recommendation on the stock.

Asset quality also improved in the March quarter, with lower slippages and a stable provision coverage ratio at 67.9%. The bank is expected to grow its loans and deposits at a compound annual growth rate (CAGR) of 12% and 15% respectively from FY25 to FY27, backed by lower reliance on borrowings and improving growth trends.

Total income for the quarter stood at Rs 89,488 crore, compared to Rs 89,639 crore in the same quarter last year. The total balance sheet size as of March 31, 2025, was Rs 39.10 lakh crore, up from Rs 36.17 lakh crore a year earlier.

Bullish Analysts

Brokerages have largely turned bullish on HDFC Bank following its Q4 results. Nuvama called the bank's asset quality “best in class.” Elara Securities reiterated its “Accumulate” call with a raised target price of Rs 2,164, valuing the bank at 2.4x FY27E P/BV.

Motilal Oswal Financial Services remains optimistic, stating that the gradual retirement of high-cost borrowings and improved operating leverage will boost the bank’s return ratios over time.

However, Kotak Institutional Equities downgraded the stock, citing challenges in FY26 due to margin and credit growth pressures.