HDFC Bank races past Goldman Sachs in market value

HDFC Bank has surpassed Wall Street powerhouse Goldman Sachs Group in market capitalisation, with the Indian lender now valued at $183.32 billion compared to the Wall Street giant’s $169.97 billion, according to data from Companiesmarketcap. The milestone highlights HDFC Bank’s steady post-merger recovery, as it navigates domestic challenges while broadening its global stature.

On Tuesday, HDFC Bank shares were trading 0.96% lower at Rs 1,901 on the BSE, while Goldman Sachs stock ended 0.28% lower at $546.40 on Monday. The shift in market capitalisation comes after HDFC Bank’s stock rebounded sharply from its 52-week low of Rs 1,426.80, approaching the Rs 2,000 mark in April 2025.

The rally in HDFC Bank’s stock has been fuelled by stronger quarterly results, stabilising net interest margins, and improved deposit mobilisation efforts after its 2023 merger with Housing Development Finance Corp. Post-merger, HDFC Bank's loan-to-deposit ratio (LDR) had spiked to 104% by March 2024, but the lender has since brought it down to 96.5% by March 2025, with management targeting a return to pre-merger levels of 85–90% by FY27.

The bank’s focus on lowering high-cost borrowings, recalibrating its portfolio toward retail and SME loans, and benefiting from systemic liquidity improvements has helped steady margins. Analysts expect HDFC Bank to maintain net interest margins between 3.5% and 3.6% by FY27, despite a broader rate-cutting cycle.

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Brokerages including Emkay Global and KR Choksey Research have reiterated 'buy' ratings on HDFC Bank, highlighting its improving asset quality, operational leverage from merger synergies, and expectations of stronger credit growth from FY26. Emkay raised its target price to Rs 2,200, citing stable core margins, better portfolio mix, and potential value unlocking from the expected listing of subsidiary HDB Financial Services by September 2025.

Notably, even Goldman Sachs itself has initiated a 'buy' rating on HDFC Bank, forecasting the stock could cross Rs 2,000, driven by easing regulatory pressures and strengthening financial metrics.

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While Goldman Sachs operates under an investment banking and trading-driven model without a traditional deposit base, HDFC Bank’s core business is rooted in retail and corporate lending. Despite the differing business structures, the proximity in market value highlights HDFC Bank’s expanding global relevance at a time when Indian financial institutions are increasingly commanding investor attention on the world stage.

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