HDFC Bank shares over slip 3%, pause 2-day upmove; should you add the stock?

Shares of HDFC Bank Ltd fell 3.49 per cent in Friday's trade to hit a day low of Rs 754.45, snapping a two-day upward movement. The decline comes after a Financial Times report indicated a possible power struggle between former part-time chairman Atanu Chakraborty and HDFC Bank MD & CEO Sashidhar Jagdishan, which allegedly led to Chakraborty's sudden resignation.

It requires to be mentioned here that Business Today has not independently verified the report at the time of publishing this article.

Chakraborty, in his resignation letter, stated that "certain happenings and practices" in the bank, observed over the past two years, were "not in congruence" with his personal values and ethics.

However, Jagdishan, interim chairman Keki Mistry and other board members have maintained since his exit that Chakraborty did not share any specific concerns or reasons with the board and that there were no operational issues within the bank.

To address the matter, HDFC Bank has appointed three external law firms to conduct an independent review of the circumstances surrounding the resignation. The bank said the firms will submit their findings within a "reasonable" period.

Separately, the lender has faced regulatory challenges over the past year. In September 2025, the Dubai Financial Services Authority (DFSA) restricted HDFC Bank's branch in the Dubai International Financial Centre from onboarding new clients due to regulatory lapses. The bank recently confirmed that it terminated three employees in connection with the compliance issues.

Despite the near-term uncertainty, several market experts remain constructive on the stock from a long-term perspective.

Market expert Raghvendra Singh said, "HDFC Bank is a strong and healthy bank. I believe this is a good time to add the stock, with a stop loss placed at Rs 700. Buying on dips is a good strategy for a lender of this quality."

Kranthi Bathini, Equity Strategist at WealthMills Securities, noted some near-term pressure but advised buying HDFC Bank on dips from a long-term perspective.

Echoing a similar view, Ravi Singh, Chief Research Officer at Mastertrust, suggested accumulating the counter on declines.