HDFC Bank Share Price Target 2026: HDFC Bank shares have come under significant pressure in recent sessions amid broader weakness in the banking sector and bank-specific concerns, keeping the stock in focus.
The country’s largest private lender has declined nearly 7 per cent over the past week. Losses deepen across longer timeframes, with the stock down around 14 per cent in the last month and about 21 per cent since the start of the year.
Bernstein reiterates ‘Outperform’; flags structural challenges
Global brokerage Bernstein has reiterated its “Outperform” rating on HDFC Bank, with a target price of Rs 1,150, indicating meaningful upside from current levels.
The price target given by the brokerage reflects an upside of around 47 per cent from the current market price.
The brokerage noted that the stock’s 21 per cent year-to-date decline reflects persistent investor concerns, despite relatively comfortable valuations in the near term.
Bernstein highlighted that the broader banking sector has been under pressure due to moderating credit growth and macroeconomic headwinds. Within this environment, HDFC Bank faces additional challenges related to deposit mobilisation, a weak CASA mix, and an elevated loan-to-deposit ratio.
The firm added that while margins may gradually normalise, the improvement is unlikely to fully offset balance sheet pressures, particularly amid weak deposit traction and rising funding costs.
It also flagged execution risks linked to post-merger integration as a key monitorable.
Limited near-term outperformance; support seen from flows
While Bernstein continues to prefer large-cap banks, it expects only limited near-term outperformance from HDFC Bank relative to peers.
That said, the brokerage sees some support emerging from potential foreign institutional inflows and a seasonal improvement in deposit growth.
Over the longer term, it maintains that HDFC Bank’s franchise strength remains intact, though a meaningful re-rating would depend on better alignment between growth and profitability.
Chairman’s exit triggered investor concerns
The stock has remained in focus following the resignation of part-time Chairman Atanu Chakraborty last week.
Shares came under selling pressure after Chakraborty stepped down, citing concerns over certain internal developments that were not aligned with his personal values and ethics, triggering governance-related worries among investors.
Other brokerages maintain bullish ratings
Despite near-term headwinds, several brokerages remain constructive on 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.)
