HDFC Bank Shares In Focus As Motilal Oswal Maintains Bullish View; Sees Up To 38% Upside — Check Target Price

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Motilal Oswal Report

Atanu Chakraborty, Part-time Chairman and Independent Director of HDFC Bank, tendered his resignation on March 18, 2026 with immediate effect. 

In his resignation letter, Chakraborty alleged that “certain happenings and practices” observed over the past two years were “not in congruence with his personal values and ethics”, while also clarifying that there are no other material reasons for his resignation.

This development has dampened investor sentiment and comes at a time when the markets are already grappling with lot of macro-uncertainty. However, the assurance from the management team, Keki Mistry's appointment as an interim chairman, and the RBI's endorsement of the bank's corporate governance and compliance standards have helped assuage some of the concerns.

Going ahead, the brokerage believes the appointment of the new Chairman and the submission of Mr. Sashi Jagdishan's name for next CEO term (term due in Oct'26) will help restore investor trust.

Meanwhile, the improved operating performance in the coming year will be critical to stock performance. The swift regulatory engagement and interim leadership appointment do provide comfort on operational continuity.

Motilal Oswal maintains its earnings estimates and expect RoA/RoE at 1.9%/14.5% by FY27E. The brokerage retains Buy with a target price of Rs 1,100 (2.2x FY28E adjusted book value + Rs 137 for subs).

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