India's largest bank by market capitalisation and second-largest in terms of asset base HDFC Bank is one of the most favourite Indian stocks among the stack of blue-chip shares following which the scrip is usually found in the equity mix of most of the fund houses, institutional investors and HNIs.
India’s largest bank by market capitalisation and second-largest in terms of asset base HDFC Bank is one of the most favourite Indian stocks among the stack of blue-chip shares following which the scrip is usually found in the equity mix of most of the fund houses, institutional investors and HNIs. HDFC Bank shares have been consistent performers among the large-cap stocks and the best stock among the components of benchmark Nifty Bank index, as far as the returns are concerned. HDFC Bank has an annual return of about 35%; surged more than 80% in previous two years and marked over a 200% upswing in the last five years.
In the financial year 2017-2018, HDFC Bank shares have been shuttled in innumerable hands but a major mutual fund house has raised the stake in HDFC Bank in the same period under review. According to the latest shareholding details released by HDFC Bank, SBI ETF Nifty 50 fund has bought as much as 1.43 crore (1,43,33,817) equity shares of HDFC Bank. Following which, SBI ETF Nifty 50 stake in HDFC Bank had grown to 4,49,94,003 shares (March 2018) from 3,06,60,186 shares (March 2017).
Notably, the state-owned Life Insurance Corporation has reduced its shareholding in HDFC Bank. As per the March 2018 data available at the stock exchanges, LIC had sold 39.22 lakh (39,22,797) equity shares of HDFC Bank in the last fiscal year. LIC holds 5,15,35,018 equity shares of HDFC Bank as at the end of March 2018 as compared to 5,54,57,815 equity shares at the end of March 2017.
In the last one year, the stock of HDFC Bank has risen about 35% to Rs 1,933 from a share price level of Rs 1,434. HDFC Bank is the third-largest company on Indian bourses by market capitalisation behind the market capitalisation leader Reliance Industries and the IT behemoth Tata Consultancy Services. HDFC Bank commands a market capitalisation of Rs 4,98,958 crore as per the closing price of Rs 1,922.7 on BSE. HDFC Bank made a 52-week low, which is also the all-time peak, of Rs 2,015 on 1 February 2018 and a 52-week low of Rs 1,425.05 on 6 April 2017 on NSE. In the FY18, HDFC Bank declared a dividend of Rs 11 per equity share of face value of Rs 2.