HDFC Bank Share Price: Anand Rathi Sees a Long Road to Catch Up with Peers

The HDFC Bank share price closed at Rs 706.95 on 21 Oct 2026, down 0.71% and about 28.7% lower than the first close of the year at Rs 991.15 (my calculation). A 19 Oct report says Anand Rathi has a target of Rs 966, about 36.6% above the close (my calculation), but calls the road to catch up with peers long, citing loan growth of 16.4% year on year, a net interest margin down 8 bps and a funding gap. The rating was not stated in the report I read.

Updated: 21 Oct 2026 • 3:51 pm

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HDFC Bank Share Price: Anand Rathi Sees a Long Road to Catch Up with Peers

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The HDFC Bank share price closed at Rs 706.95 on 21 Oct 2026, down 0.71%, after Anand Rathi set a target of Rs 966 in a report dated 19 Oct, which is about 36.6% above the close (my calculation). The brokerage says HDFC Bank has a long road to catch up with peers, because loan growth of 16.4% year on year is slower than at ICICI Bank, Axis Bank and Kotak Mahindra Bank, and the net interest margin fell 8 bps because of FCNR flows. A funding gap, with low-cost deposits lagging credit growth, and a change in the top management add to the caution, and the rating was not stated in the report I read. The stock is about 28.7% below its first close of 2026 and trades at 1.82 times book against 2.59 times for ICICI Bank.

The HDFC Bank share price has been under pressure through 2026, falling from Rs 991.15 on the first trading day to Rs 706.95, with a 2026 low of Rs 681.90 on 11 Sep. The Anand Rathi report argues that the bank looks lower priced than its own history but that catching up with faster growing peers will take time, so the target of Rs 966 depends on a recovery that the brokerage itself calls long.

This article on the HDFC Bank share price covers the Anand Rathi view, the price and valuation today, the comparison with ICICI Bank, the governance and leadership reports and what to watch next. It is educational and not a recommendation to buy or sell any share.

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Table of Contents

HDFC Bank Share Price: What Anand Rathi Said

HDFC Bank share price: Anand Rathi point	What the report says
Target for the HDFC Bank share price	Rs 966, about 36.6% above the 21 Oct close (my calculation)
Rating	Not stated in the report I read
Loan growth	16.4% year on year, slower than ICICI Bank, Axis Bank and Kotak Mahindra Bank
Net interest margin	Down 8 bps, linked to FCNR flows
Funding gap	CASA growth lags credit growth, which keeps funding costs under watch
Valuation method	Core bank plus subsidiaries, on FY2029 estimates
Leadership	Anup Bagchi named MD; Kaizad Bharucha to leave early

The report is dated 19 Oct 2026 and was carried by Whalesbook. I read only that summary and not the full Anand Rathi note, so details such as the exact multiple behind the Rs 966 target are not available to me. The phrase long road to catch up is the headline's framing of the brokerage view, and the investor should read it as a call for patience and not as a short-term trigger.

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HDFC Bank Share Price Today: Levels and Valuation

HDFC Bank share price: measure	Reading on 21 Oct 2026
Close of the HDFC Bank share price	Rs 706.95, down 0.71%
Move since the first close of 2026	Down about 28.7% from Rs 991.15 (my calculation)
2026 high of the HDFC Bank share price	Rs 1,006.40, so about 29.8% below it (my calculation)
2026 low of the HDFC Bank share price	Rs 681.90 on 11 Sep, so about 3.7% above it (my calculation)
50-day average	Rs 717.59, so about 1.5% below it (my calculation)
14-day RSI	44.3
Market capitalisation	About Rs 10,97,187 crore
Trailing P/E and industry P/E	13.11 against 11.84
Price to book and return on equity	1.82 and 13.27%
Earnings per share and dividend yield	Rs 54.28 and 2.17%

On these numbers the HDFC Bank share price is not low against the industry P/E of 11.84, but it is lower than ICICI Bank on price to book. The stock is close to its yearly low and well below the Rs 966 target. Brokers that see recovery usually point to the price to book near 1.8 times as low for the bank's own history, but I did not find the historical multiple in the pages I read.

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Risk: A target 36.6% above the close needs a re-rating that has not started, and the stock fell about 28.7% in 2026 while peers held up better.

HDFC Bank Share Price vs ICICI Bank

HDFC Bank share price: measure	HDFC Bank	ICICI Bank
Close on 21 Oct 2026	Rs 706.95	Rs 1,385
Move in 2026 so far	Down about 28.7%	Up about 3.5%
Market capitalisation	About Rs 10,97,187 crore	About Rs 9,92,261 crore
Trailing P/E	13.11	15.79
Price to book	1.82	2.59
Return on equity	13.27%	15.39%

HDFC Bank is still the larger bank by market value, but the gap with ICICI Bank is only about Rs 1.05 lakh crore (my calculation). ICICI Bank earns a higher return on equity and trades at a higher multiple, which is the market's way of paying for faster growth. That is the catch up Anand Rathi refers to, and it explains why the HDFC Bank share price can look low and still stay low.

Governance and Leadership Reports on the HDFC Bank Share Price

A TradingView piece dated 24 Sep 2026 described governance concerns, including the resignation of the chairman, the CEO declining an extension, an internal inquiry into alleged business overreach and scrutiny of overseas branches. The Whalesbook report of 19 Oct speaks of Anup Bagchi being named MD and Kaizad Bharucha leaving early. The two reports describe the leadership changes differently, and I could not reconcile them from the pages I read, so check the exchange filings for the current position of the CEO and MD before relying on either account.

HDFC Bank share price: Q1 FY27 reading	Reported figure
Deposits	Rs 31.7 lakh crore, up 14.7%
Gross NPA (GNPA)	1.17%
Net NPA	0.41%
Profit after tax	Rs 19,060 crore
Technical support cited by SMC	Rs 700 and Rs 650

Asset quality is clean, with gross NPA of 1.17% and net NPA of 0.41%, so the pressure on the HDFC Bank share price comes from growth, margin and leadership questions and not from bad loans. The close of Rs 706.95 is only about 1% above the Rs 700 support cited by SMC (my calculation), and a break below it would bring the Rs 681.90 low into view.

Risk: Leadership change and governance reports can weigh on the HDFC Bank share price even when the loan book is clean.

What to Watch Next for the HDFC Bank Share Price

The September-quarter result for loan growth, net interest margin and the CASA ratio
Whether the HDFC Bank share price holds the Rs 700 support and the Rs 681.90 low
Clarity on the CEO and MD position in exchange filings
Whether the stock closes above its 50-day average near Rs 717.59

Conclusion

The HDFC Bank share price at Rs 706.95 sits near its yearly low, with Anand Rathi seeing a Rs 966 target but a long catch up because of loan growth of 16.4%, a thinner margin and a funding gap. Asset quality is sound and the bank is still the larger one, but leadership questions remain open. Check the filings, compare with peers and size any position to your own risk.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

Frequently Asked Questions

What is the Anand Rathi target for the HDFC Bank share price?

Ans. Anand Rathi has a target of Rs 966 per the 19 Oct 2026 report, which is about 36.6% above the close of Rs 706.95 (my calculation). The rating was not stated in the summary I read, and I did not see the full note.

Why does Anand Rathi say HDFC Bank has a long road to catch up?

Ans. The report points to loan growth of 16.4% that trails ICICI Bank, Axis Bank and Kotak Mahindra Bank, a net interest margin down 8 bps and a funding gap where CASA lags credit growth.

Where is the HDFC Bank share price compared with its 2026 range?

Ans. It closed at Rs 706.95 against a 2026 high of Rs 1,006.40 and a low of Rs 681.90 on 11 Sep. That is about 29.8% below the high and about 3.7% above the low (my calculation).

Is the HDFC Bank share price lower than ICICI Bank on valuation?

Ans. On price to book it is lower, at 1.82 against 2.59, and on trailing P/E it is 13.11 against 15.79. ICICI Bank earns a higher return on equity of 15.39% against 13.27%, so the lower multiple partly reflects slower growth.

What are the HDFC Bank asset quality numbers?

Ans. Reports on Q1 FY27 show gross NPA of 1.17%, net NPA of 0.41%, deposits of Rs 31.7 lakh crore and profit after tax of Rs 19,060 crore. Asset quality is not the main worry in the reports I read.

What are the leadership concerns at HDFC Bank?

Ans. One report speaks of Anup Bagchi being named MD and Kaizad Bharucha leaving early, and another from 24 Sep describes the chairman resigning and the CEO declining an extension. They differ, so check the exchange filings.

What support levels are cited for the HDFC Bank share price?

Ans. SMC cites support at Rs 700 and Rs 650, and the 2026 low is Rs 681.90. The close of Rs 706.95 is only about 1% above Rs 700, so these levels are close.

Is this article investment advice?

Ans. No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.