Now, HDFC Bank’s market capitalization is ten times that of crisis-hit Credit Suisse after the bank’s share price fell on speculation about its financial health. HDFC Bank’s market capitalization is six times that of Deutsche Bank.
Point to be noted that Credit Suisse’s m-cap is $11 billion, whereas Housing Development Finance Corporation Limited Bank’s m-cap is $99.10 billion. A year ago, Credit Suisse had a market value of $26 billion.
Deutsche Bank’s m-cap is $15 billion. Last year, its m-cap was $26 billion. Credit Suisse and Deutsche Bank have fallen nearly 58 percent and 40 percent over the past year.
Many Indian banks like ICICI Bank, Axis Bank, and IndusInd Bank now have a higher market capitalization than Credit Suisse and Deutsche Bank. SBI has an m-cap of $58 billion, while ICICI Bank’s m-cap is $74 billion. Kotak Mahindra Bank’s m-cap is $44 billion.
History Of HDFC BANK
HDFC bank was among the first financial institutions in India to receive consent from the RBI i.e., the Reserve Bank Of India to set up a private sector bank. Housing Development Finance Corporation Limited Bank came into existence in August 1994, named HDFC Bank Limit, headquartered in Mumbai, India.
Housing Development Finance Corporation Limited Bank has its headquarters in Mumbai. Housing Development Finance Corporation Limited bank presently has a privileged system of over 1416 branches spread across 550 cities across India. Customers at more than 500 locations enjoy facilities through telephone banking. The bank also has a network of approximately 3382 interconnected ATMs in these cities.
Founded in 1977, HDFC is India’s leading housing finance company with an impeccable track record in Indian and international markets. The bank HDFC has established and made significant development in marketing mortgage lending for various market segments. HDFC has also maintained a large business customer base for its housing-related lending services and facilities. HDFC, with its experience and knowledge in the monetary bazaars, sturdy marketplace status, exclusive and unique customer contracts, and large stockholder base has excelled a lot. HDFC bank was ideally placed to promote its status and impression in the Indian atmosphere.
The shares can be checked in the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. The bank’s GDRs i.e., Global Depository Receipts are listed on the Luxembourg Stock Exchange.
On 23 May 2008, the merger of Centurion Bank of Punjab with HDFC Bank was formally checked and accepted by the RBI i.e., the Reserve Bank of India to complete the statutory and regulatory approval process. Under the scheme of the merger, CBP shareholders got one share of HDFC Bank for every 29 shares of CBP.
The combined entity’s balance sheet size would be more than Rs. 1,63,000 millions crowns. The merger has added significant value to HDFC Bank in terms of expanded branch network, geographical reach and customer base, and a larger section of the expert workforce.
In a landmark deal in the nation’s finance and banking business, Times Bank Limited (a new private sector bank backed by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., it was the first merger between the two private banks within the banks of the new generation of the private sector.
Further, under the scheme of the central government approved by the shareholders of both the banks and the Reserve Bank of India, the shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of the bank.
The bank HDFC serves an extensive variety of saleable, profitable, and transaction banking services and treasury products to wholesale and retail customers.
The HDFC bank Has Three Main Professional Parts:
Indiscriminate Finance Facilities – The HDFC bank’s main target marketplace ranges from huge revenue companies in corporate India to small and medium-sized corporates and agri-based businesses.
Retail banking services – The Retail Bank aims to provide customers in the target market with a wide area of monetary, and financial products, and banking services that provide the customer with all their banking requirements in one place.
Reserves – In this business, the HDFC bank has three key productive areas – External Exchange and By-products, Money Market, and Local Currency Debt Securities and Equities. The Reserve Branch is accountable and liable for handling the revenues and market risk of this investment portfolio.
On Friday, Credit Suisse’s new chief executive Ulrich Koerner wrote a memo to staff highlighting the bank’s strong capital base and liquidity position. Following this, its five-year senior CDS widened to 250 bps.
Deutsche Bank and Credit Suisse, shares of both have been under pressure since the start of the first month. In light of the problems with gilt yields, investors were worried that these financial banks will have to go through huge losses, as sources said.
The Vertical investment bank Credit Suisse reported reduced profits in previous quarters. In 2016, Deutsche Bank had to see immense pain when the company faced a big hit to its earnings and its management announced a restructuring plan that saw dividends suspended, according to a report by sources.
edited and proofread by nikita sharma