HDFC Bank Share Price Continues to Decline for Fourth Consecutive Session, Raising Questions About Market Sentiment

HDFC Bank Share Price Declines Amid Sustained Selling Pressure

HDFC Bank (BSE: 500180) share price declined by 3.83% to ₹750.55 apiece on the BSE, extending its fall for the fourth straight session. The private bank's shares have plummeted more than 11% in the past four sessions.

The recent slump in HDFC Bank's shares came after the abrupt resignation of its non-executive chairman Atanu Chakraborty on March 18. Chakraborty stepped down citing a mismatch between certain practices within the bank and his personal values and ethics over the last two years.

RBI Approval of Keki Mistry as Interim Chairman

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Following Chakraborty's exit, the Reserve Bank of India (RBI) approved the appointment of Keki Mistry as interim chairman of HDFC Bank for a three-month period. Mistry's appointment, along with the RBI's endorsement of the bank's corporate governance and compliance standards, have helped assuage some of the concerns.

Earnings Estimates and Valuation

Haitong Securities expects HDFC Bank's advances to grow by 13% CAGR and profit to grow by 14% CAGR over FY25-FY28. The foreign brokerage house estimates HDFC Bank to deliver average ROAA and ROAE of 1.8% and 14.5% by FY26-FY28.

Motilal Oswal Financial Services maintains its earnings estimates and expects RoA and RoE at 1.9% and 14.5% by FY27. The domestic brokerage firm retains a 'Buy' call on HDFC Bank shares with a target price of ₹1,100 apiece.

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Technical Outlook

HDFC Bank stock price has faced sustained selling pressure after failing to break past the ₹1,020 resistance zone multiple times. The stock corrected sharply in December and subsequently breached its key 200 DEMA support in early January 2026. A breach below the 38.2% retracement level near ₹762 could lead to further downside towards the 50% retracement level around ₹684.