HDFC Bank stock fell 2.5% amid profit booking after new MD and CEO appointment, with analysts citing ongoing governance and growth challenges, and brokerages maintaining buy ratings

Mon 5 Oct 2026

Stock move today

2.5 percent down

Five-year average price-to-book

2.9 times

One-year forward price-to-book

1.6 times

Current price-to-book

1.8 times

Citi target price

970 rupees

Heard on business television between 14:44:37 - 14:47:37 IST.

• Shivam said the new MD and CEO appointment was positive but challenges remain: restoring investor confidence after governance issues including resignation of ex part-time chairman Atanu Chakraborty and the MSRDC issue.
• He said the HDFC-HDFC Bank merger brought considerable debt that needs addressing, along with deliberate loan growth moderation and the need for balance sheet metric improvement.
• Yields on assets have been on a downward trend for five quarters, with continuous decline in low-cost deposits affecting margins.
• Valuations: five-year average price-to-book at 2.9 times, one-year forward at 1.6 times, current at 1.8 times, suggesting potential for rerating.
• Citi maintained buy with target of Rs 970 citing rerating potential; Jefferies maintained buy with target of Rs 880 citing management clarity; Kotak Institutional maintained buy with target of Rs 1,050, saying rerating will be gradual, not immediate.

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