HDFC Bank to be world’s fourth most valuable lender
June 30, 2023
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HDFC Bank will be the fourth most valuable bank in the world in terms of market capitalisation after the merger with mortgage lender HDFC. According to Bloomberg data, the merged entity will have a market capitalisation of $172 billion, the most after JPMorgan Chase, Industrial and Commercial Bank of China (ICBC) and Bank of America.
Currently, JPMorgan Chase has a market capitalisation of $417 billion, while ICBC and Bank of America are valued at $228 billion and $227 billion, respectively. ICICI Bank, India’s second most valuable bank, had a market capitalisation of $80 billion at the Friday close, while state-owned State Bank of India (SBI) was valued at $62 billion.
The merged entity will be India’s second most valued company after Reliance Industries, which had a $210 billion market cap on Friday. Global index services provider FTSE will replace HDFC in its indices with HDFC Bank after closure of the merger. The bank is not part of the index currently. There will be no change in weight and the move will not result in any fresh inflow now.
