Highlights
- CEO Sashidhar Jagdishan to retire on October 26
- HDFC Bank stock falls sharply from Rs 1,020 peak
- Brokerages see up to 46% upside
HDFC Bank, the country’s largest private sector bank, has been in the limelight in recent times for a host of reasons. The latest development drawing attention is Managing Director and Chief Executive Officer Sashidhar Jagdishan opting out of being considered for reappointment after his current term ends on October 26, 2026.
However, the bank’s recent past has featured several major developments beyond Jagdishan’s exit, including the merger of HDFC Ltd with HDFC Bank, Chairman Atanu Chakraborty stepping down and various penalties imposed by the Reserve Bank of India (RBI).
July 1, 2023: The merger of HDFC Ltd into HDFC Bank became effective. HDFC Ltd delisted, while shareholders received 42 HDFC Bank shares for every 25 HDFC Ltd shares.
September 2024: RBI fined HDFC Bank Rs 1 crore for violations related to deposit interest rate rules, recovery agent conduct and customer service protocols.
December 2024: SEBI issued a warning to HDFC Bank for non-compliance in merchant banking activities.
March 2025: RBI imposed a Rs 75 lakh penalty on the bank for KYC non-compliance, including issues related to risk categorisation and multiple customer IDs.
September 2025: Dubai’s DFSA restricted HDFC Bank’s DIFC branch from onboarding new clients for certain regulated services, citing operational and procedural deficiencies.
November 2025: RBI imposed a Rs 91 lakh penalty after a statutory inspection found multiple benchmarks being used within the same loan category, KYC and outsourcing control gaps, and oversight lapses in outsourced financial services.
March 9, 2026: The bank’s GNRC announced staff accountability actions, with three employees removed following an internal investigation linked to deposit-related practices.
March 18, 2026: Chairman Atanu Chakraborty resigned abruptly, stating that certain practices were not congruent with his values and ethics. The bank’s market capitalisation fell sharply following the news.
March 19, 2026: RBI publicly stated that it found no material governance concerns and described HDFC Bank as financially sound and well-capitalised. Keki Mistry was appointed interim chairman for three months.
May 6, 2026: The Bombay High Court quashed an FIR alleging bribery and cheating against CEO Sashidhar Jagdishan in the Lilavati Trust-linked matter.
May 27, 2026: HDFC Bank denied Rs 45 crore wrongdoing in the MSRDC deposit probe.
June 2025: The CEO was named in a fraud complaint linked to loan recovery, with the bank calling the allegations baseless. The matter was often cited in governance discussions in 2026.
August 5, 2026: Shareholders approved capital issuance and the appointment of Rajiv Kumar, former Finance Secretary, as a director.
August 19, 2026: RBI approved LIC’s acquisition of up to 9.99 per cent stake in HDFC Bank.
August 29-30, 2026: CEO Sashidhar Jagdishan announced that he would not seek reappointment and would retire on October 26, 2026, ending a tenure that oversaw the merger and major technology upgrades.
HDFC Bank stock performance
These developments, both positive and negative, have naturally had an impact on HDFC Bank’s share price.
The stock traded at Rs 866.25 on July 3, 2023, a day after the merger became effective. It subsequently declined to Rs 733.6 on October 26 before recovering to Rs 860.7 on December 28.
On February 14, 2024, the stock fell to Rs 681.78, its lowest level since the merger. It then climbed to Rs 897 on July 3, 2024, before correcting to Rs 794 on July 24.
HDFC Bank shares later touched Rs 939.98 on December 5, 2024 and Rs 989.45 on April 23, 2025. The stock hit Rs 1,020 on October 23, 2025, its highest level since the merger.
The shares subsequently declined sharply, touching Rs 726.65 on March 30, before recovering to Rs 843 on July 7. The stock again fell to Rs 707 on August 28, 2026.
In Monday’s trading session, the stock of India’s largest private sector bank rose around 2 per cent, with prices hitting an intraday high of Rs 739.75, following the announcement that Sashidhar Jagdishan had opted out of being considered for reappointment after his current term ends on October 26.
HDFC Bank share price outlook
The bank’s stock reflected some strength in Monday’s trading session despite the overall position of the stock remaining on the weaker side. On the outlook front, brokerages including Bernstein, Morgan Stanley and Nuvama shared their views on the stock, with their targets implying an upside of up to 46 per cent.
Nuvama sees over 21 per cent upside
Nuvama maintained its BUY recommendation on HDFC Bank but cut its share price target to Rs 875 from Rs 1,025. The revised target implies an upside potential of around 21.5 per cent for the stock.
The brokerage said CEO Sashidhar Jagdishan’s exit creates a path for a credible successor. Despite governance concerns, Nuvama does not view the leadership change as a fundamental impairment to the bank’s strong franchise and recovery prospects.
Morgan Stanley maintains ‘OVERWEIGHT’ rating
Morgan Stanley maintained its OVERWEIGHT rating on HDFC Bank with a target price of Rs 1,025, implying an upside of around 42 per cent.
The brokerage sees deep value in the stock compared with its fundamentals and historical levels. It noted that the CEO reappointment issue had been an overhang, while the bank’s gradually improving fundamentals could support a recovery in the shares.
Bernstein sees 46 per cent upside in HDFC Bank
Bernstein maintained its OUTPERFORM rating on HDFC Bank with a target price of Rs 1,150, reflecting an upside potential of around 46 per cent.
The brokerage believes Sashidhar Jagdishan’s planned retirement removes concerns around a potentially RBI-restricted short-term tenure. It sees an opportunity for the incoming CEO to reset the bank’s narrative, although HDFC Bank has struggled to consistently meet market expectations.
Analyst view on HDFC Bank
HDFC Bank shares have corrected sharply from their highs, but the stock is now showing signs of finding strong support around the Rs 700 mark.
However, Singh cautioned that the broader trend remains negative from both the short- and medium-term perspective. For a meaningful trend reversal, the stock would need to move above the Rs 740-750 zone.
“740-750 is a level where I would say the first break would happen in case the trend is to change from a shorter-term perspective,” Singh added.
HDFC Bank has formed “a very strong support” around Rs 700, and sustaining above Rs 735-740 could indicate that the recent downside is over, barring any fresh negative developments, Singh added.
“Otherwise looking at the charts, looking at the support levels and how the stock has been behaving, it appears that HDFC Bank could witness consolidation and above 735-740, we could witness a rally in the stock.”
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
