Motilal Oswal Upgrades HDFC Bank to Buy, Targets Rs 1100

HDFC Bank Research Report: Update on Resignation of Independent Director

Summary On 18th March 2026, Mr. Atanu Chakraborty, Part-time Chairman and Independent Director of HDFC Bank, tendered his resignation with immediate effect. The resignation was attributed to certain practices not aligning with his personal values and ethics, with no material reasons cited.

Resignation Background Mr. Chakraborty, a former secretary in the Ministry of Finance, served as a seasoned policymaker and brought significant regulatory insight and institutional experience to the board. During his tenure, he played a key role in strengthening governance oversight and supporting the bank through its transformational merger with HDFC Ltd.

Governance Record The bank has confirmed that there are no governance, operational, or regulatory issues that have been brought to the board's attention prior to the resignation. The Reserve Bank of India (RBI) has also endorsed the bank's governance record, stating that there are no material concerns regarding its conduct or governance.

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Earnings Estimates We maintain our earnings estimates and expect Return on Assets (RoA) and Return on Equity (RoE) at 1.9% and 14.5% by FY27E, respectively.

Recommendation We retain our BUY rating with a Target Price (TP) of INR1,100 (2.2x FY28E Asset-Based Value + INR137 for subscription).