The market cap of HDFC Bank has reached Rs 2.63 lakh crore, making the bank almost as valuable as State Bank of India and all the 20 nationalized banks put together. The market cap of the latter banks stands at Rs 2.77 lakh crore. However, these banks control more than 70% of the banking business in the country, which HDFC Bank accounts for just 6%. Analysts point out that his situation has arisen not just because HDFC Bank’s market cap has risen 14.5%, but becaise there has been a massive fall of 41% in the combined market cap of the nationalized banks, especially the State Bank of India. The share prices of these banks have taken a majot hit because of their exposure to large corporates and have come under selling pressure in recent weeks. Not only these banks, but private banks like ICICI Bank and Axis Bank have also considerable exposure to large corporates and these banks too have been hit at the stock exchanges.
