HDFC Bank shares hit record high, market cap soars to ₹15.46 lakh crore; two key reasons behind the rally

Shares of the country's largest private lender, HDFC Bank, rose as much as 1.88% in intraday deals to hit record high of ₹2,017.50 on the National Stock Exchange on Thursday, June 26. HDFC Bank was top mover in the 30-share SENSEX as it added 226 points towards 950-point gain in the SENSEX, data from BSE showed. The stock has been witnessing buying momentum ever since share sale of its arm HDB Financial Services opened via initial public offering (IPO).

Here is why HDFC Bank shares surged to record high

HDFC Bank shares have been witnessing strong buying interest ever since share sale process of HDB Financial via IPO opened. HDFC Bank which owns majority stake in the non-banking finance company will raise ₹10,000 crore by reducing stake in HDB Financial Services. Pre-IPO HDFC Bank held 94.36% stake in HDB Financial Services and after the IPO HDFC Bank's stake in the company will come down to 74.19%.

HDB Financial Services raised ₹3,369 crore from anchor investors including BlackRock funds, Life Insurance Corporation of India and Norway's sovereign wealth fund ahead of the IPO.

HDB Financial Services is selling shares in price band of ₹700-₹740 per share. At the upper end of the price band, the company is valued at nearly ₹61,400 crore. As of 2:44 pm, HDB Financial Services IPO was subscribed 82% with one day left for bidding.

The company proposes to utilise the proceeds from the fresh issue to strengthen its Tier-I capital base. This will support future capital needs, including additional lending, to support business growth.

HDFC Bank Q4FY25 performance

HDFC Bank in last quarter of financial year 2024-25 reported 6.7% year-on-year (YoY) jump in its standalone net profit to ₹17,616.14 crore as against ₹16,511.85 in the year-ago period. Sequentially, the bank's net profit increased by 5.3% from ₹16,735.50 crore posted in Q3 FY25.

Net interest income (NII) of the bank increased to ₹32,066 crore for the reporting quarter, up 10.3% YoY as compared to ₹29,080 crore in the December quarter.

The Bank's board had recommended a dividend of ₹22 per share with a face value of ₹1 each for the financial year 2024-25. The record date for the dividend is Friday, June 27.

As of 2:46 pm, HDFC Bank shares traded 1.81% higher at ₹2,016. The stock was among the top gainers in the 30-share SENSEX.