A Times of India report said, HDFC Bank, after its merger with parent HDFC at current valuations, will be among the world’s top 10 most valuable banks. It will also be the first Indian bank to make it to the top 10 clubs.
The Housing Development Finance Corporation Limited was among the first financial institutions in India that received “in principle” approval from the RBI (Reserve Bank of India) to set up a bank in the private sector.
HDFC Bank, the largest private sector of India, has a market capitalization of about $108 billion. It has recently edged past Citigroup which was at number 17, with over $100.5 billion. The SBI ($57 billion), the country’s largest lender, is at number 32 in front of BNP Paribas ($55 billion) in terms of valuation. The combined market capitalization of HDFC Bank and HDFC ($52 billion) would be around $160 billion.
Financial Stability Board List
The Financial Stability Board publishes a list of 30 systemically important banks worldwide. These topper banks are divided into four buckets depending on –
- Systemic importance,
- International spread,
- Interconnectedness, and
- Complexity.
There is no Indian Bank included in the 2021 list published by the board. Although, this list has four Chinese lenders among the 30 most important banks in the world. Nowadays, China has five banks in the Top 10, and this number is the most for any country.
HDFC Merge with Parent Entity HDFC
For the moment, HDFC Bank declared that it had received no unfavorable observations from the stock exchanges in relation to its proposed merger with parent entity HDFC, the Housing Development Finance Corporation Ltd.
After HDFC’s board cleared the amalgamation of its wholly-owned subsidiaries HDFC Investments Ltd and HDFC Holdings Ltd with HDFC Bank, the merger was announced in April this year.