With this merger, the amalgamated entity will rise to the second spot among India’s most esteemed companies, second only to the colossal Reliance Industries, which boasted a colossal market capitalization of $210 billion on the preceding Friday.
Image-: Moneycontrol
In a staggering turn of events, HDFC Bank is set to secure its position as the fourth most valuable bank in the world, propelled by its merger with mortgage lender HDFC. This union will also propel the bank to become the second-largest company in India.
Astoundingly, the merged entity is projected to reach a remarkable market capitalization of $172 billion, outshining all other banks except for JPMorgan Chase, Industrial and Commercial Bank of China (ICBC), and Bank of America.
Presently, JPMorgan Chase reigns supreme with a staggering market capitalization of $417 billion, while ICBC and Bank of America closely trail behind with valuations of $228 billion and $227 billion respectively. Comparatively, India’s second most valuable bank, ICICI Bank, stands at a market capitalization of $80 billion as of the previous trading session, while the state-owned State Bank of India (SBI) is valued at $62 billion.
With this merger, the amalgamated entity will rise to the second spot among India’s most esteemed companies, second only to the colossal Reliance Industries, which boasted a colossal market capitalization of $210 billion on the preceding Friday.
Recognizing this significant development, global index services provider FTSE will replace HDFC with HDFC Bank in its indices once the merger concludes. Interestingly, the bank currently does not feature in the index. Importantly, this transition will have no impact on the weightage of the index and will not result in any fresh inflow at this time.
