Recent fluctuations in the equity market have triggered the wild changes in the fortunes of the Indian companies. At first, it was Coal India grabbing the numero uno position from India’s largest private sector company by market capitalization Reliance Industries.
However, the new draft mining bill spelled doom for Coal India prospects, which proposes give away of 26% profit pie of coal miners towards the welfare of the tribes and displaced population in the region. Thus, Reliance Industries gained its top spot on the Indian bourses, followed by PSU oil and gas major ONGC.
Now, its turn for the battle between the bigger banks to fight for the coveted tag of most valued lender in India. SBI had ruled the roost since quite long time with its highest number of branches across India amongst both public and private banks.
However, now the state-owned bank has been piped by private lender HDFC Bank as the country’s most valued lender with a market capitalization of Rs.1.1 lakh crore.
This change in leadership position can be attributed to SBI’s erosion in market capitalization post downgrade of its stand-alone credit by rating agency Moody’s Investors Service to D+ from C- on account of its weakening asset quality.