HDFC Bank Share Price Down 25% in 2026 as Market Awaits New CEO Appointment

HDFC Bank shares extended their decline on Thursday, September 24, slipping more than 1% and snapping a two-session rise as investors continued to weigh leadership and corporate governance developments at India’s largest private-sector lender. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The stock fell to ₹730.20 on the NSE after opening at ₹725. It had closed at ₹737.25 on Wednesday. 

The latest decline adds to a difficult year for the stock. HDFC Bank shares have fallen more than 25% in 2026 and are trading nearly 33% below their 52-week high of ₹1,020. 

Attention is now also on the bank’s next Managing Director and Chief Executive Officer, with HDFC Bank yet to publicly name a successor. 

HDFC Bank shares lose more than a quarter of their value in 2026 

HDFC Bank’s share price has come under sustained pressure this year, falling more than 25% on a year-to-date basis. 

On September 24, the stock opened at ₹725 on the NSE against the previous session’s close of ₹737.25. It later traded at ₹730.20, down more than 1%. 

The fall has also taken the stock nearly 33% below its 52-week high of ₹1,020. 

According to the report, concerns surrounding leadership changes and corporate governance have weighed on market sentiment around the lender. 

Former Chairman Atanu Chakraborty resigned 14 months before the end of his tenure. Managing Director and CEO Sashidhar Jagdishan also declined an extension, bringing the bank’s leadership succession into focus. 

The report further cited an internal inquiry involving alleged use of marketing budgets for indirect discounts linked to deposit targets, as well as regulatory scrutiny of overseas branches over the sale of wealth products. 

Q1 FY27 numbers show growth in deposits 

While the stock has weakened, HDFC Bank’s Q1 FY27 numbers showed continued growth in deposits and low reported levels of non-performing assets. 

Total deposits crossed ₹31.7 lakh crore during the quarter, representing year-on-year growth of 14.7%. 

Gross non-performing assets stood at 1.17%, while net NPAs were at 0.41%. 

The bank’s capital adequacy ratio stood at 19.6%, while profit after tax for the quarter was ₹19,060 crore. 

These figures provide a contrast to the pressure seen in the stock, with the recent market debate centred largely on leadership, governance and compliance developments rather than a deterioration in the asset-quality numbers cited in the report. 

Valuation falls as stock undergoes de-rating 

The decline in HDFC Bank shares has also brought down its valuation. 

The bank historically traded at a price-to-book multiple of around 3.5 to 4.2 times, according to the assessment cited by Livemint. 

That multiple has now fallen to around 2.37 times price-to-book value. 

The report linked the de-rating to concerns surrounding governance and leadership, even as the bank’s reported financial indicators remain relatively stable. 

Search for HDFC Bank’s next CEO remains in focus 

HDFC Bank has yet to announce who will succeed Sashidhar Jagdishan as Managing Director and CEO. 

The bank’s board has submitted two candidates to the Reserve Bank of India for approval, ranked in order of preference. The proposed appointment would be for a three-year term. 

The names of the candidates have not been disclosed publicly. 

The pending appointment has become an important development for the bank as investors watch for greater clarity around its future leadership. 

Analysts cited in the report indicated that a leadership transition could influence market sentiment, particularly given the governance and compliance concerns surrounding the bank. 

Analysts point to ₹700 and ₹650 levels 

The report also cited technical assessments of HDFC Bank’s share price following its steep decline. 

One analyst identified ₹700 as an important support level for the stock, followed by a stronger support area around ₹650. 

Another assessment suggested that the current market environment may not favour aggressive positioning, while the fall in the stock could be watched by investors with a longer investment horizon. 

These are analyst assessments cited by Livemint rather than company guidance. 

For now, HDFC Bank enters the next phase of 2026 with two contrasting developments in focus: its shares are down more than 25% for the year, while its Q1 FY27 numbers show deposits above ₹31.7 lakh crore, gross NPA at 1.17% and capital adequacy at 19.6%. 

The next CEO appointment remains a key development to watch as the bank moves through its leadership transition.