HDFC Bank shares have endured a turbulent 2026, with the stock coming under sustained pressure amid a series of leadership changes, governance concerns and continuing post-merger challenges.
The turbulence began in March following the sudden resignation of former chairman Atanu Chakraborty and was followed months later by CEO Sashidhar Jagdishan’s planned exit, leaving investors focused on the bank’s leadership stability.
As of October 2026, HDFC Bank shares were trading at ₹721.20, down around 15% from Chakraborty’s resignation date on March 18 and nearly 30% below their 52-week high. The stock’s performance in 2026 marked its worst calendar-year showing since 2008, according to the data provided.
HDFC Bank stock performance after Atanu Chakraborty’s exit
Chakraborty’s abrupt departure on March 18 triggered an immediate sell-off in HDFC Bank shares. In the four trading days following his resignation, the stock plunged 12%, wiping out roughly $16 billion in investor wealth as markets reacted to concerns around the bank’s governance and leadership.
In his resignation letter, Chakraborty said that “certain happenings and practices within the bank” observed over the preceding two years were “not in congruence” with his personal values and ethics.
The Reserve Bank of India subsequently stepped in to calm market concerns, stating that it had found no material issues relating to HDFC Bank’s governance, conduct or financial soundness.
HDFC Bank also appointed independent external law firms Trilegal and Wadia Ghandy & Co to review the allegations. In June 2026, the reviews concluded that Chakraborty’s operational allegations were not supported by internal records or witness interviews.
The stock briefly recovered around 5% following the conclusion of the legal reviews. However, the recovery did not last as other fundamental concerns continued to weigh on the shares.
Overall, HDFC Bank stock fell nearly 18% in March, before recovering 5.5% in April. The recovery was followed by another 3.5% decline in May, while June brought a 7% gain. The stock then weakened again, falling 6% in July and 5% in August. It declined a marginal 0.04% in September.
The volatility intensified in late August after outgoing CEO Sashidhar Jagdishan announced his planned departure. The simultaneous exit of Chief Compliance Officer Rakesh Kumar Rajput added to concerns over leadership stability at the bank.
HDFC Bank shares subsequently hit a 52-week low of ₹682 in September 2026 before entering a phase of minor consolidation.
Anup Bagchi appointment
The leadership uncertainty eased after HDFC Bank appointed Anup Bagchi as its new MD & CEO. Bagchi, the former chief of ICICI Prudential Life Insurance, is scheduled to take charge on October 27, 2026, as Jagdishan’s tenure comes to an end.
The appointment has provided a fresh focus for investors after months of leadership-related uncertainty. The stock also showed early signs of recovery around the announcement, with HDFC Bank’s ADR rising 5% in the first week of October 2026. The domestic stock had already gained 1.76% on Thursday, October 1, ahead of the announcement.
Other reasons for the fall
However, leadership changes are only one part of the challenge facing the lender. Multiple brokerages have highlighted continued pressure around deposit mobilisation and compressed net interest margins following HDFC Bank’s mega-merger.
The bank is also facing institutional downgrades and target-price cuts. Additional pressure has come from US class-action securities litigation alleging internal-control lapses related to unrecorded deposit inducements that were allegedly used to inflate financial metrics.
Foreign investor activity has added another layer of pressure. Prominent global institutional investors have reduced their exposure to HDFC Bank, with Jefferies’ global head of equity strategy Christopher Wood entirely exiting the stock from his portfolio to reallocate funds elsewhere.
Jefferies said HDFC Bank is currently trading at a 26% discount to ICICI Bank on a price-to-book value basis, wider than the 11% discount recorded on March 18.
Following Chakraborty’s departure, Keki Mistry was positioned as interim part-time chairman. The subsequent transition from Jagdishan to Bagchi now marks another major change at the top of the bank.
With the stock still well below its 52-week high, investors will be watching whether the new leadership can address the concerns around deposit growth, margins and the post-merger operating environment while rebuilding confidence after a year of repeated leadership upheaval.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
