HDFC Bank share price declined by over 3% on Monday, extending its fall to the fourth straight session, amid sustained selling pressure. HDFC Bank shares fell as much as 3.83% to ₹750.55 apiece on the BSE today.
In the past four sessions, HDFC Bank share price has plunged more than 11%. The recent slump in India’s largest private lender’s shares came after the abrupt resignation of its non-executive chairman, Atanu Chakraborty, on March 18.
The fall in HDFC Bank coincides with the sharp drawdown in the Indian stock market due to macro-uncertainty amid the prolonged US-Iran war in the Middle East, which stoked inflation fears following elevated crude oil prices.
Chakraborty stepped down, citing a mismatch between certain practices within the bank and his personal values and ethics over the last two years.
He emphasised that his decision was driven by differences in ideology rather than any wrongdoing, while clarifying that no other material reasons were involved.
Following his exit, the RBI approved the appointment of Keki Mistry as interim chairman of HDFC Bank for three months.
The assurance from the management team, Mistry’s appointment as an interim chairman, and the RBI’s endorsement of the bank’s corporate governance and compliance standards have helped assuage some of the concerns for investors, capping downside.
Should you buy, sell or hold HDFC Bank shares?
HDFC Bank share price has massively underperformed the index as it has lost ~24% on a year-to-date (YTD) basis, as against Nifty 50’s decline of 14%, and a 13% fall in the Bank Nifty index.
“HDFC Bank currently trades at a P/ABV of 1.5x March 2028E, and at the current valuation, risk-reward seems favourable. We don’t see any material concern in the sudden exit of Mr Atanu, and believe it’s a good price to enter the name,” said Haitong Securities.
HDFC Bank’s advances are expected to grow by 13% CAGR and profit to grow by ~14% CAGR over FY25-FY28, according to the estimates by the foreign brokerage house. It expects HDFC Bank to deliver average ROAA and ROAE of 1.8% and 14.5% by FY26-FY28. It believes the bank is working on quality from a long-term perspective, however, in the near term, trajectory in NIM, and deposits (esp. retail deposits) will be the key.
Haitong Securities maintained an ‘Outperform’ rating and HDFC Bank share price target of ₹1,100 per share.
Motilal Oswal Financial Services believes the appointment of the new Chairman and the submission of Sashidhar Jagdishan’s name for next CEO term will help restore investor trust.
“Meanwhile, the improved operating performance in the coming year will be critical to stock performance. The swift regulatory engagement and interim leadership appointment do provide comfort on operational continuity,” said MOFSL.
The domestic brokerage firm maintains its earnings estimates and expects RoA and RoE at 1.9% and 14.5% by FY27. It retained a ‘Buy’ call on HDFC Bank shares with a target price of 1,100 apiece.
Technical Outlook
HDFC Bank stock price has faced sustained selling pressure after failing to break past the ₹1,020 resistance zone multiple times. The stock corrected sharply in December and subsequently breached its key 200 DEMA support in early January 2026.
“Since then, HDFC Bank share price has been forming a lower top–lower bottom structure, which indicates a prevailing downtrend in technical terms. From a broader perspective, applying Fibonacci retracement to the rally from the COVID-lows to the recent highs indicates that the 38.2% retracement level near ₹762 acts as an immediate support,” said Ruchit Jain, Head, Equity Technical Research, Wealth Management, Motilal Oswal Financial Services Ltd.
According to him, a breach below this could lead to further downside towards the 50% retracement level around ₹684.
At 11:05 AM, HDFC Bank share price was trading 3.60% lower at ₹752.35 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
