After a 24% Fall, HDFC Bank Finds Support: JPMorgan Turns Market Sentiment Positive

The recent HDFC share price is ₹743.25, reflecting a decline of more than 3.90% from the previous session on 27th March, Friday, after Jefferies Christopher Wood removed the private lender from two key portfolios, as per the latest report.  

The pressure on HDFC Bank share prices has increased after the resignation of part-time Chairman Atanu Chakraborty, who raised concerns about corporate governance at the country’s largest private lender. 

Key Highlights of the JP Morgan & Jefferies Valuation Report

• JPMorgan Chase has maintained a Neutral/Hold rating on HDFC Bank, with a price target of ₹1,050-₹1,090, on the back of near-term caution due to factors such as governance issues, leadership changes, and challenges in the merger process.
• However, the market consensus on HDFC Bank remains largely positive, with most analysts assigning a Buy/Strong Buy rating and an average price target of around ₹1,150, reflecting an upside of 30-50% from current levels.
• Analysts continue to emphasise the bank’s solid core fundamentals, asset quality, and visibility of long-term loan growth, along with the gradual pick-up in deposit growth after the HDFC Ltd merger.
• Overall, while JPMorgan Chase is cautious in the near term, most analysts agree that HDFC Bank has a solid long-term investment case once near-term challenges normalise.

• Jefferies has a “Buy” recommendation on HDFC Bank with a target price of ₹1,240, indicating an upside potential of 55-65%, considering that the bank’s “valuation is in our view deep value” following the recent correction. Moreover, Jefferies believes the bank is facing “short-term issues but not structural.”
• Bernstein has an “Outperform” recommendation on HDFC Bank with a target price range of ₹1,150-1,200.

Latest Report on HDFC Bank: 

Recent news that Sashidhar Jagdishan Chakraborty, commonly known as Chakraborty in market terms, has resigned from HDFC Bank has sparked considerable interest among investors and market experts. This is because HDFC Bank is a significant private-sector bank. 

The departure of Chakraborty, who held a crucial position on the bank’s management team, was due to personal reasons, according to the official communication. Though the reasons for the departure do not indicate any corporate governance issues, the departure assumes significance given the size of HDFC Bank and the merger with HDFC Ltd.

HDFC Bank: Recent Price Movements 

As per the recent HDFC share price of ₹738.25, down 2.37% over the previous session, it also reflects a downward trend of 16.02% over the past month; due to the resignation of Chakraborty, which may negatively impact the HDFC share price and also make a downward trend by 23.24% over the past six months. The HDFC Bank market capitalisation is ₹11,64,123 crores with the 52-week low of ₹726.65 and the 52-week high of ₹1,020.50.  

HDFC Bank: Analyst Ratings and Targets 

The HDFC Bank stock has recently experienced a optimise 24% decline year-to-date, more than the Nifty 50’s 13% drop and ICICI Bank’s 8% fall. The HDFC share has been closed at ₹757.95, which makes a large five-week losing streak, with the recent trading activity showing on the price declines. 

Jefferies also maintained a ‘Buy’ rating and ₹1,240 target, which suggests a potential 64% upside. The company has noted that the stock trades at 1.6x estimated FY27 adjusted book value and 13x P/E, following the HDFC Bank valuation. 

HDFC Bank: Future Outlook 

As per the analyst’s sentiment on HDFC Bank, it remains optimistic about leadership decisions and the bank’s success in post-merger integration. The future outlook for the banking sector has seen loan growth of approximately 12% in FY26 and FY27, mainly driven by domestic demand. However, some liquidity challenges, rather than the growth, remain a key factor to watch in the long-term potential. The bank’s Capital Adequacy Ratio (CAR) remains robust at 19.9% as of the 31st December, 2025, from the above regulatory minimum of 11.9%. 

Conclusion 

Despite the significant correction of nearly 24% in 2026, it seems that HDFC Bank is finding a strong support zone, as there are signs of positive sentiment in the market, led by global brokerages such as JPMorgan Chase and Jefferies. Although there are near-term headwinds, such as the exit of Atanu Chakraborty and discussions around governance and the integration of the merger, they are considered to be near-term and not structural.

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