HDFC Bank Shares: After the resignation of the Chairman, the shares crashed, know what the experts are saying now?

HDFC Bank Shares: Despite the recent fall in HDFC Bank shares, brokerage firms continue to have confidence in this stock. After the resignation of the bank’s part-time chairman Atanu Chakraborty, there has been a huge fall in the shares. However, analysts believe that there are no major concerns regarding the corporate governance of the bank. There is a lot of scope for substantial growth in the shares from the current levels.

On Thursday, shares of HDFC Bank closed at ₹800 level, which shows a decline of 5.1%. During intraday trading, the stock fell as much as 8.7%, its biggest intraday fall in the last two years. The reason for this decline was the questions raised regarding governance after the resignation of the Chairman.

‘Buy’ rating intact; target price high

Global brokerage firm Jefferies has maintained its ‘Buy’ rating on HDFC Bank shares. Target price has been fixed at Rs 1,240. This means there is a potential upside of about 55% for the shares from current levels. Jefferies says that after discussions with the management and the board, it has become clear that although there may be some minor problems, the corporate governance structure of the bank remains strong and no compromise has been made in it.

Jefferies also emphasized that Atanu Chakraborty has denied any wrongdoing in his resignation. Apart from this, the Reserve Bank of India (RBI) has also made it clear that it has no serious concerns regarding the governance of the bank. These signals are being viewed positively by investors.

Motilal Oswal also bullish; Expected increase of up to 38%

Brokerage firm Motilal Oswal Financial Services has also reiterated its ‘Buy’ rating on HDFC Bank shares, and set a target price of ₹1,100, indicating a potential upside of about 38%. The brokerage says that both the bank and the regulator have made it clear that there were no governance, operational or regulatory problems before the resignation. RBI’s statement that “there is no major concern on record,” further strengthens investor confidence.

According to the brokerage, now the focus of investors will be on the appointment of a permanent chairman and the process of CEO succession. Motilal Oswal believes that clarity on these issues will further strengthen confidence in the stock.

weak stock performance

HDFC Bank stock has fallen by about 9.5% in the last one year, while the Nifty 50 has seen a decline of only 0.8% during the same period. However, despite this, the bank’s capital position, liquidity and business growth remain strong.