HDFC Bank shares have been under sell-off pressure for the last two straight sessions after the abrupt resignation of non-executive chairman . In the last two sessions of last week, the slipped from around ₹843 per share to ₹781 on the NSE, logging anover 7% dip. After ending at ₹781 per share on Friday last week, shares of India’s largest private lender are just ₹11 away from the 52-week low of ₹770 on the NSE.
After a sharp sell-off on Thursday and Friday last week, have slipped from ₹887.75 to ₹781 per share in March 2026, logging a more than 12% drop. So, are on the on track for the worst monthly decline since March 2020. In March 2020, HDFC Bank shares had fallen 26.8% amid a broader market crash driven by the COVID-19 pandemic.
However, the market is anticipating a change in fate at the start of the week, after the Reserve Bank of India’s (RBI’s) statement on the recent crisis at India’s largest private lender. The RBI, in a separate release, highlighted that there were no material governance concerns in the bank based on periodic assessments.
RBI also gave its approval to the HDFC Bank’s request for a transition arrangement, saying, “The Reserve Bank has taken note of the recent developments in HDFC Bank. A transition arrangement as requested by the Bank has been approved by the Reserve Bank of India as regards the position of Part-Time Chairman of the Bank.”
What HDFC Bank’s fundamentals say
Speaking on the recent fall in the HDFC Bank shares, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that the sharp fall in HDFC Bank shares following the sudden resignation of its chairman introduces near-term uncertainty around governance and leadership continuity, especially given the ethical concerns cited. While the appointment of Keki Mistry as interim chairman provides temporary stability, investor sentiment may remain cautious until clarity emerges from management commentary and regulatory comfort from the RBI.
However, the SMC Global Securities expert maintained that HDFC Bank’s Q3FY26 performance remains fundamentally strong, with PAT growth of ~11%, stable asset quality (GNPA at 1.24%, NNPA at 0.42%), and healthy loan and deposit growth. Capital adequacy at ~19.9% and a controlled cost-to-income ratio further reinforce balance sheet resilience.
“HDFC Bank remains fundamentally strong, well capitalised, and there is no formal governance concern highlighted by the RBI so far. RBI’s statement that no material concern is on record gives near-term comfort, while Keki Mistry also indicated that no specific irregularity was brought to the board’s attention,” Abhinav Tiwari, Research Analyst at Bonanza said.
The Bonanza expert said that, operationally, HDFC Bank is still dealing with post-merger balance sheet adjustments, especially a high LDR and relatively slower retail loan growth, while some market share has shifted toward large PSU banks. For now, the stock looks more like a wait-and-watch case rather than an aggressive value buy, because sentiment will depend on whether this remains a temporary governance overhang or fades without further issues.
Should you buy HDFC Bank shares?
Unveiling investment strategy in the bear-hit HDFC Bank shares, Seema Srivastava of SMC Global Securities, said, “Over the long term, HDFC Bank’s strong franchise, granular retail book, and consistent execution track record suggest that the current correction may be sentiment-driven rather than structural, offering potential accumulation opportunities once governance concerns are addressed and leadership stability is restored.”
HDFC Bank share price target
Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, “HDFC Bank shares are in the oversold zone and are showing a trendline support on the monthly chart in the range of ₹750 to ₹790, suggesting a potential reversal. Investors can look to buy on dips in the range of ₹750 to ₹780 with a stop-loss of ₹740 for the target range of ₹880 to ₹900.”
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