Noida, July 20 (APAC MEDIA): Shares of HDFC Bank Ltd fell more than 5 per cent in early trade on Monday despite major brokerages retaining positive ratings after the private lender reported its June quarter earnings over the weekend.
The stock declined as much as 4.37 per cent to ₹784 in early trade, extending its losses for 2026. HDFC Bank said that “certain happenings and practices within the bank are not in congruence with my personal values and ethics” and closed 1.4 per cent higher at ₹819.60 on Friday ahead of the earnings announcement.
The bank reported a standalone net profit of ₹19,059.72 crore for the April-June quarter, up 4.98 per cent from a year earlier but below the consensus estimate of ₹19,332 crore. Net interest income (NII) rose 6.7 per cent year-on-year to ₹33,535.95 crore, missing the poll estimate of ₹34,353 crore.
Net interest margin stood at 3.26 per cent on total assets, while gross non-performing assets were 1.17 per cent and net non-performing assets were 0.41 per cent as of June 30, 2026.
Despite the earnings miss, brokerages maintained a constructive outlook on the lender.
Jefferies reiterated its “Buy” rating with a target price of ₹1,050, saying the modest shortfall in NII was offset by lower operating expenses and credit costs.
Bernstein maintained its “Outperform” rating with a target price of ₹1,150, citing healthy balance sheet growth, improved operating efficiency, and stable asset quality, even though margins continued to face pressure.
Nomura also reaffirmed its “Buy” rating with a target price of ₹950, describing the quarter as broadly in line with expectations and highlighting improving loan and deposit growth along with strong asset quality.
Commenting on the leadership transition, HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan welcomed the appointment of Rajiv Kumar as the bank’s part-time chairman, saying it had brought a sense of stability.
Kumar, a former Chief Election Commissioner and former Finance Secretary, was appointed part-time chairman following the resignation of Atanu Chakraborty, which became effective on March 18.
In his resignation letter, Chakraborty had said that “certain happenings and practices within the bank are not in congruence with my personal values and ethics”, triggering concerns over the bank’s corporate governance and a sharp decline in its share price at the time.
Kumar previously served as secretary in the Department of Financial Services between 2017 and 2020, where he played a key role in banking sector reforms. During his tenure, the government froze accounts linked to about 3.38 lakh shell companies and introduced measures to curb Ponzi schemes.
Separately, the bank’s operating profit declined to ₹28,169 crore during the quarter from ₹35,734 crore in the corresponding period a year earlier.
–ENDS–
Disclaimer:Â This article is for informational purposes only. APAC Media is not liable for any investment decisions or losses. Please conduct your own research or consult a financial advisor before investing.
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