HDFC Bank Ltd. has seen its shares fall by 19.65% year-to-date in 2026, settling at Rs 796.05 on Thursday. This significant decline comes amidst various developments, including changes in its interim leadership and ongoing market analysis regarding its future trajectory.
Leadership Transition and Regulatory Approvals
The Reserve Bank of India (RBI) recently extended Keki Mistry's tenure as interim Part-time Chairman for an additional three months, or until a regular appointment is made, whichever comes first. This follows the resignation of former Part-time Chairman Atanu Chakraborty, who cited a lack of congruence with personal values and ethics. HDFC Bank clarified that no material operational issues or governance lapses were brought to its attention during Chakraborty's departure.
Expert Views on HDFC Bank's Performance
Despite the sharp decline in HDFC Bank shares this year, many market experts maintain a positive outlook on the private sector lender's long-term prospects.
- Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, highlighted that HDFC Bank's valuations appear attractive from a longer-term perspective, recommending investors accumulate the stock at current levels.
- Ravi Singh, Chief Research Officer at Master Capital Services, emphasized the bank's strengthening position as India's leading private sector lender, supported by steady earnings growth, healthy loan expansion, and robust asset quality. Singh noted successful post-merger integration and management's focus on accelerating deposit growth and enhancing profitability.
Technical Analysis and Institutional Interest
From a technical standpoint, HDFC Bank shares show signs of renewed buying interest. Ravi Singh pointed out that the stock has formed a strong base after extended consolidation and is now trading above its 50-day Exponential Moving Average (EMA). This price structure suggests accumulation by institutions, with a sustained move above key resistance levels potentially triggering a fresh bullish breakout.
However, Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One, cautioned that a bearish gap around Rs 800-818 might restrict intermediate momentum. He identified Rs 760-745 as a potential cushion for any near-term shortcomings.
Nomura's Positive Outlook
Global brokerage firm Nomura has assigned a 'Buy' rating for HDFC Bank with a target price of Rs 950. Nomura views the RBI's foreign currency non-resident bank (FCNR(B)) deposit swap scheme as a potential boon for the bank, suggesting HDFC Bank could garner 15% of overall FCNR flows, equivalent to 3% of its current deposit base. The firm believes the risk-reward ratio remains favorable, with the stock trading at decade-low valuation multiples.