HDFC Bank shares crashed to a fresh 52-week low of ₹682 on Friday, declining 1.7% despite positive legal developments. The stock has fallen around 4% in a week and 6% in a month, marking the second consecutive day of hitting new lows. According to Mint, the stock hit a 52-week high of ₹1,020.35 on 23 October last year, highlighting the significant decline from recent peaks. The heavyweight stock has plunged around 31% in 2026 so far, significantly underperforming compared to rivals ICICI Bank and SBI. HDFC Life also hit a new 52-week low at ₹515.10, falling 3.5% and registering a new low on the NSE. The insurance arm has lost 31.3% in the calendar year and quotes near a two-year low.
HDFC Bank announced that all seven cases of legal proceedings against it in the Credit Suisse AT1 bonds investment matter have been rejected by the Bahrain Court. As reported by The Economic Times, the bank stated that "All seven cases of legal proceedings against HDFC Bank in the CS AT1 bonds investment matter stand rejected by the Bahrain Court." The disputes stem from the write-down of Credit Suisse's AT1 securities to zero during its emergency takeover by UBS in March 2023, which resulted in losses for bondholders globally. The court found insufficient admissible evidence to substantiate the allegations and rejected claims as investors could not establish that any loss was caused by HDFC Bank. According to The Hindu BusinessLine, the court found that investors were ordered to bear the costs of proceedings in all seven cases. The bank emphasized that "Where required, the Bank will stand with its customers. However, the Bank is not in the business of underwriting the investments made by the customers out of their own judgement, and it will therefore defend itself rigorously against any unsubstantiated claims."
HDFC Bank terminated three senior executives earlier this year over their alleged role in the mis-selling of Additional Tier-1 (AT1) bonds linked to Credit Suisse. According to The Economic Times, the terminated executives include Group Head of Branch Banking Sampath Kumar, Executive Vice President Harsh Gupta (Middle East, Africa and NRI onshore business), and Payal Mandhyan. Gupta and Mandhyan had been suspended in January last year after the bank initiated an internal probe into the alleged mis-selling of debt products at its Dubai branch. The investigation found that several AT1 bond investors claimed they were encouraged to move their foreign currency non-resident (FCNR) deposits from India to Bahrain.
HDFC Bank's financial performance in FY26 fell short of expectations despite revenue growth. According to the company's annual report, total net revenue rose 13.6% to ₹1,91,218.6 crore in FY26 from ₹1,68,302.4 crore in the previous year, driven by increased net interest income and fees. Net profit increased by 10.9% to ₹74,671.3 crore from ₹67,347.4 crore. Net Interest Income (NII) grew by 4.9% to ₹1,28,686.0 crore, with net interest margin (NIM) standing at 3.34% in FY26. Deposits increased 14.4% YoY to ₹31,05,250 crore, while advances rose by 12.1% YoY to ₹29,37,166 crore. However, HDFC Bank's MD and CEO Sashidhar Jagdishan announced he would not seek re-appointment for another term after his current tenure ends on October 26, 2026. As per Mint, brokerage firm PL Capital said Jagdishan's exit would be negative and near-term pressure may persist till succession clarity emerges, though the stock remains attractive at 1.4 times March 2028E core ABV.
HDFC Bank stock appears to be heavily oversold on technical indicators, with the weekly RSI trading below the conventional oversold zone. According to Mint, Jigar S. Patel from Anand Rathi Share and Stock Brokers noted that despite the stock making lower lows on the price chart, the RSI is not making corresponding lower lows, indicating the formation of a bullish divergence. This suggests downside momentum may be weakening and raises the possibility of base formation in the ₹670–690 zone. The major support is placed at ₹660, and a sustained break below this level could extend the weakness further. On the upside, ₹735 is the key resistance, and a decisive breakout above this level would strengthen the reversal setup. PL Capital trimmed the target price to ₹950 from ₹1,040 while maintaining a buy recommendation, noting that medium-term return would hinge on strategy and execution.
HDFC Bank shares have delivered a negative return of 12% over the last five years compared to a 28% jump in Sensex during the same period, as per Mint data. In the last one year, the stock has declined 29%, while year-to-date, it has shed over 30%. The stock's underperformance reflects broader challenges facing the banking sector and governance concerns that have emerged over recent years. Corporate brands represent institutional promises about competent leadership and board maturity in correcting circumstances, and the current market performance reflects these broader concerns about governance and institutional stability, with the common thread across these cases involving governance latency - the distance between when boards recognize problems and when they act publicly.
