HDFC Bank share price target: RBI nod to Keki Mistry allays fears; Nirmal Bang retains Buy

Nirmal Bang Institutional Equities on Friday said the Reserve Bank of India's quick approval to Keki Mistry’s appointment as interim Part-time Chairman and clarifications provided by the HDFC Bank’s management during the conference call, allay investor fears on operational issues and corporate governance. It remained positive on HDFC Bank Ltd due to its best-in-class asset quality, growth potential because of good capital position and expanding deposit franchise, potential for margin improvement and merger synergies in the long term. 

"We maintain a ‘BUY’ rating on HDFC Bank with a target price of Rs 1,210 (valued at 2.6 times December 2027E ABV plus subsidiary value per share of Rs 114)," the brokerage said. 

Nirmal Bang said while Atanu Chakraborty’s resignation letter cited a lack of congruence with personal values and ethics, the board stated that no specific material matters, operational issues, or governance lapses were brought to their attention when they inquired with the outgoing Chairman Chakraborty. The management characterised the situation as potentially arising from ‘relationship issues’ between individuals rather than institutional or governance failures. 

"The management also explicitly denied rumours of a power struggle at either the board or employee level, describing the leadership team as a cohesive unit. Further, Keki Mistry also emphasised that at 71 years of age, he would not have accepted this responsibility of interim Chairman if he had any doubts regarding the bank's integrity or governance," Nirmal Bang said.

HDFC Bank management said the RBI approved the interim chairmanship in an exceptionally short timeframe, which the lender viewed as a strong signal of regulatory confidence in the institution.

The re-appointment of Kaizad Bharucha as deputy Managing Director for another three years with effect from April 19, 2026, was highlighted as a sign of management stability and internal cohesive functioning. Nirmal bang said the board expressed full confidence in MD & CEO Shashidhar Jagdishan, whose reappointment is due in approximately seven months. 

The Nomination and Remuneration Committee will take this up at an appropriate time. 

"The bank’s board maintains that the bank's risk management, audit processes, and internal controls remain robust. The bank’s commitment to stepping up the bank’s growth in the coming quarter remains unchanged. It
also remains focused on realizing the full potential of market synergies following its recent large scale merger," Nirmal Bang said.