HDFC Bank shares snap 4-day losing streak; stock up 2% today

HDFC Bank Ltd shares snapped their four day losing streak in Tuesday’s trade on March 24, following the bank's decision to bring in external law firms to investigate recent boardroom turbulence.

At 9:28 am, shares of HDFC Bank rose 1.91% to Rs 757.95 on BSE against their previous close of 743.75 apiece. The stock snapped its four-day losing run, during which it had declined nearly 12% over the same period. During the period, the stock hit a 52-week low of Rs 740.95.

In a fresh stock exchange filing, the lender said that its board of directors met on March 23, 2026, and took a step to reinforce the bank's governance standards. The board approved the appointment of both domestic and international external law firms to conduct a thorough review regarding the former chairman's resignation letter.

“The said law firms have been advised to provide their report on the same within a reasonable period of time,” the company said.

The selling pressure in the stock came as the part-time chairman and independent director of the lender resigned on March 18. The early exit of Atanu Chakraborty spooked investors.

"Certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal values and ethics," Chakraborty said in its resignation letter.

Following the exit, HDFC Bank clarified to the exchanges that the outgoing chairman did not point to any specific happenings or practices to back up his statement. The bank reassured stakeholders that there are currently no material governance, operational, or regulatory concerns. To ensure continuity, the Reserve Bank of India has approved Keki Mistry to step in as the interim part-time chairman for a period of three months.

In a recent note, brokerage firm Axis Securities maintained its ‘Buy’ call on HDFC stock but trimmed its target price to Rs 1,020 per share. Axis Securities highlighted that while the bank's operational execution remains strong, the "ambiguity, especially around board-level exits citing values and ethics, would result in a near-term cap on upside".