HDFC Bank stock dips 2% on huge volume; trades lower for third straight day

According to reports, HDFC Bank initiated an internal review into the alleged sharing of confidential information with outsiders by two senior executives.

HDFC Bank share price movement

 

HDFC Bank’s share price extended its fall, declining 2 per cent to ₹689.40 on the BSE in Thursday’s intraday deals amid heavy volume. The private sector bank's stock price quoted lower for the third straight day, falling 5 per cent during the period. It hit a 52-week low of ₹682 on September 11, 2026.

 

At 02:01 PM, HDFC Bank quoted 2 per cent lower at ₹693.75, as compared to a 0.69 per cent decline in the BSE Sensex. The average trading volume at the counter more-than-tripled with a combined 53.21 million shares changing hands on the NSE and BSE.

 

 

Meanwhile, thus far in the calendar year 2026, HDFC Bank underperformed the market by falling 30 per cent, as against a 14 per cent decline in the BSE Sensex.

 

Why is HDFC Bank's share price under pressure?

 

HDFC Bank is a leading private sector bank with consistent growth and operational performance over various cycles. Post merger, the bank became the second largest in terms of size with a diversified portfolio.

 

According to reports, HDFC Bank has initiated an internal review into the alleged sharing of confidential information with outsiders by two senior executives. The probe is examining potential violations of the bank’s code of conduct and governance standards. The bank has not commented on the said news reports. 

 

According to analysts at ICICI Securities, the stepping down of Kaizad Bharucha, deputy managing director brings near-term uncertainty. Anup Bagchi’s appointment as MD & CEO marks a key leadership transition, with his forthcoming strategy on growth, margins and balance sheet optimisation awaited.

 Higher customer acquisition, improving branch maturity and deeper customer engagement are expected to remain the strategy to strengthen the liability franchise. The appointment of Anup Bagchi as MD & CEO brings a strategic transition, with renewed focus expected on liability mobilisation, balance sheet optimisation and sustainable growth. The brokerage firm expects advances to grow at 14-15 per cent over FY27–28E, supported by improving retail traction and broad-based credit demand.

 

Meanwhile, HDFC Bank reported a largely in-line September 2026 quarter, supported by healthy business growth and strong operating profits, although provisions were elevated. Net interest margins (NIMs) on total assets contracted by 10bp QoQ to 3.16 per cent, while the bank guided for NIMs to be on an upward trajectory from hereon. 

 

Healthy loan growth was driven by the SME segment, while retail loan growth gathered some momentum. Deposit growth was healthy, with FCNR (B) mobilization resulting in the credit-deposit (CD) ratio inching up to 96.0 per cent. 

 

Analysts at Motilal Oswal Financial Services expect the CD ratio to gradually moderate to 93 per cent by FY28E through calibrated balance sheet management. The bank maintains contingency and floating provisions of ₹15,600 crore and ₹21,400 crore, respectively. Improvement in NIMs from the retirement of high-cost borrowings and operating leverage should support a gradual improvement in profitability and return ratios in the coming years, the brokerage firm said in the Q2 result update. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.