HDFC Bank Share Price Gain 1% in Early Monday Trade: Reasons Explained

29 Jun 2026 , 11:11 AM

Shares of India’s largest private sector bank – HDFC Bank Ltd gained as much as 1% on Monday to touch a high of 805.60 apiece after global brokerage firms delivered positive commentary post an independent legal review found no evidence supporting allegations made by former chairman Atanu Chakraborty in his March 2026 resignation letter.

The findings of the independent review are expected to ease the corporate governance concerns, which had earlier pressured the stocks performance in the market. The review from the independent team is expected to clear the way for appointing new non-executive chairman for the company as well as  renew the tenure for CEO Sashidhar Jagdishan.

Jefferies Sees 32% Upside

Jefferies maintained its ‘Buy’ rating on HDFC Bank with a target price of ₹1,050, indicating a potential upside of approximately 32% from recent levels.

According to the brokerage, the independent legal review, conducted by external law firms, found no evidence in board minutes, committee records, internal communications, or witness interviews to support the allegations raised by former chairman Atanu Chakraborty.

Jefferies believes the findings help alleviate governance concerns that had weighed on investor confidence. The brokerage also noted that the development could pave the way for the appointment of a new non-executive chairman and the renewal of Managing Director and CEO Sashidhar Jagdishan’s tenure.

Additionally, Jefferies highlighted that HDFC Bank remains attractively valued at around 13 times FY27 estimated earnings and 1.7 times adjusted price-to-book value.

JPMorgan Maintains ‘Overweight’ Rating

JPMorgan also reiterated its ‘Overweight’ rating on HDFC Bank, assigning a target price of ₹990.

The brokerage stated that the legal review should reduce the governance risk premium that has impacted the bank’s valuation since Chakraborty’s resignation. It observed that HDFC Bank’s stock had de-rated by approximately 8% on a price-to-book basis despite no significant deterioration in its operating performance.

JPMorgan further expects the Reserve Bank of India’s recent measures to encourage Foreign Currency Non-Resident (FCNR) deposits to support deposit mobilisation and business growth, strengthening the bank’s long-term outlook.

The latest developments have boosted investor confidence by addressing governance-related concerns that had weighed on HDFC Bank’s valuation. With two major global brokerages maintaining positive ratings, attractive valuations, and expectations of stable leadership, analysts believe the stock continues to offer favourable long-term investment potential. However, investors are likely to monitor future board appointments and regulatory approvals for additional clarity.

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