Moneycontrol News
1:30 pm Goldman on HDFC Bank: HDFC Bank, India’s largest private sector bank by loans, should see its market capitalisation rise to more than USD 100 billion by FY20, compared to it taking two decades to cross USD 50 billion, Goldman said.
The key driver would be doubling of profits to USD 5 billion by FY21 as HDFC Bank leverages
(1) the market share shift from state-owned banks,
(2) the retail under-penetration using its large distribution network, highest efficiency among retail peers, and low cost of funds; and
(3) a shift of financial savings from deposits to other products, it added.
Under its bull case, the research house sees potential for market cap rising to around USD 137 billion, assuming valuations rerate on potentially higher growth and best-in-class profitability.