HDFC Bank Share Price Under Pressure

Key Figures:

• ₹738.35: Intraday low on Monday, March 30
• -2.3%: Stock fall on Monday, March 30
• -6%: Decline over the last two sessions
• ₹1,200: Macquarie's 12-month target price
• ₹1,010: JPMorgan's price target
• 33%: Potential upside from current levels

Market Update

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HDFC Bank's share price continued to decline on Monday, March 30, falling as much as 2.3% to an intraday low of ₹738.35. This extends the losses from the previous session, where the stock fell more than 3%. The private sector lender has declined nearly 6% over the last two sessions.

Reasons Behind the Decline

The decline can be attributed to several factors, including the abrupt resignation of part-time chairman Atanu Chakraborty. Chakraborty resigned with immediate effect, citing certain developments and practices at the bank over the past two years that were not in line with his "personal values and ethics." This has raised fresh concerns over corporate governance at the country's largest private lender.

Brokerage Calls

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• Macquarie Capital: Removed HDFC Bank from its 'Marquee Buy' list, but maintained its 'Outperform' rating with a 12-month target price of ₹1,200.
• JPMorgan: Upgraded the stock to 'Overweight' from 'Neutral', citing an improved risk-reward after the recent sharp correction. Set a price target of ₹1,010, indicating a potential upside of around 33% from current levels.

Regulatory Review

Markets regulator Sebi has started a preliminary review of the claims made in the resignation letter and whether other directors were aware of any material information and failed to document it. The Reserve Bank of India has also stated that it has found "no material concerns on record as regards its (bank's) conduct or governance."