The decline in HDFC Bank’s share price continued on Friday, following the sudden resignation of its chairman, Atanu Chakraborty. The stock had already seen a sharp fall on Thursday, and despite a broader market recovery on Friday, it remained under pressure.

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In the final trading session of the week, HDFC Bank shares slipped nearly 2% to ₹781, close to their 52-week low of ₹772. The stock has fallen more than 10% in March so far, marking its steepest monthly decline since March 2020.

Brokerages remain divided

Despite the recent fall, brokerage firm Motilal Oswal has maintained its ‘buy’ rating on the stock. The firm believes HDFC Bank shares could rise by up to 38% over the next year, setting a target price of ₹1,100.

JM Financial also remains positive on the stock from a long-term perspective but has warned that near-term pressure may continue.

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However, Macquarie has taken a more cautious stance and has withdrawn its ‘buy’ rating on HDFC Bank.

Atanu Chakraborty stepped down as chairman before the end of his term, citing ‘ethics’, which triggered concern among investors and led to the stock’s sharp decline.

Following his resignation, HDFC Bank appointed Keki Mistry as interim chairman for the next three months. The Reserve Bank of India has clarified that there are no irregularities in the bank’s management.

Despite this assurance, investor sentiment remains weak, and the stock continues to face downward pressure.

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