HDFC Bank Shares Plummet 7% Over Two Days Amid RBI Nod for Transition Arrangement

HDFC Bank Shares Under Pressure Following Chairman's Resignation

HDFC Bank's shares have been under sell-off pressure for the last two sessions, following the abrupt resignation of non-executive chairman Atanu Chakraborty. The share price has slipped from ₹843 per share to ₹781 on the NSE, logging a more than 7% dip in the last two sessions of last week. This brings the shares just ₹11 away from the 52-week low of ₹770 on the NSE.

HDFC Bank shares have slipped from ₹887.75 to ₹781 per share in March 2026, logging a more than 12% drop. This puts the shares on track for the worst monthly decline since March 2020, when shares fell 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, following the Reserve Bank of India's (RBI's) statement on the recent crisis at HDFC Bank. The RBI highlighted that there were no material governance concerns in the bank based on periodic assessments and approved HDFC Bank's request for a transition arrangement.

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HDFC Bank's fundamentals remain strong, with PAT growth of ~11% in Q3FY26, 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.

Analyst Insights

• Seema Srivastava, Senior Research Analyst at SMC Global Securities, notes that the sharp fall in HDFC Bank shares introduces near-term uncertainty around governance and leadership continuity, but the bank's fundamentals remain strong.
• Abhinav Tiwari, Research Analyst at Bonanza, says that operationally, HDFC Bank is dealing with post-merger balance sheet adjustments, while some market share has shifted toward large PSU banks.
• Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, suggests that 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.

Investment Strategy

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Seema Srivastava of SMC Global Securities suggests that 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.

Target Price

Ganesh Dongre of Anand Rathi suggests that 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.