Business News›Prime›Markets›HDFC Bank is now world’s No. 6 by market cap. What will it take to compete directly with JPMorgan?

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HDFC Bank is now world’s No. 6 by market cap. What will it take to compete directly with JPMorgan?

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Synopsis
According to Jefferies, only HDFC Bank has delivered over 15% CAGR profits in the past decade. At the global stage, the stock’s returns reflect growth and macros. However, analysts say that to climb up on the global valuation ladder, the bank will have to consistently deliver on growth without compromising on asset quality. That’s easier said than done.

JPMorgan Chase is the largest bank in the world in terms of market capitalisation at USD418 billion, followed by Bank of America and China’s ICBC at USD212 billion and USD206 billion, respectively. The difference is massive. The second most-valued bank is almost 50% below JPMorgan. Now India’s biggest private bank, HDFC Bank, has entered the elite club of large global banks, that includes Wells Fargo and HSBC. The bank rose to the rank following