HDFC Bank Share Price Fell Over 10% in 3 Trading Sessions; What RBI Said on Leadership Transition

By Ventura Research Team 2 min Read Mar 23, 2026

HDFC Bank Shares Fall 10% in 3 Days; RBI Eases Governance Concerns

HDFC Bank shares have come under sharp selling pressure over the last three trading sessions, declining more than 10%. The stock has fallen from around ₹843 to ₹754 per share on the NSE, bringing it close to its 52-week low of ₹751. The weakness has extended through March 2026, with the stock sliding from ₹887.75 to ₹751, marking a decline of over 15% and putting it on track for its worst monthly fall since March 2020, when it had dropped 26.8% during the COVID-19-led market crash.

The recent decline has been triggered by the abrupt resignation of non-executive chairman Atanu Chakraborty, which has raised concerns around leadership continuity and governance in the near term.

RBI Provides Relief With Transition Approval

Amid the ongoing uncertainty, the Reserve Bank of India has stepped in with a reassuring stance. The RBI approved HDFC Bank’s request for a transition arrangement regarding the position of Part-Time Chairman. In its statement, the regulator clarified that it has taken note of the recent developments and emphasized that no material governance concerns have been identified based on its periodic assessments.

This regulatory comfort has helped ease immediate fears, with the interim appointment of Keki Mistry as chairman expected to provide temporary stability.

Fundamentals Remain Strong Despite Sentiment Hit

Despite the sharp correction, HDFC Bank’s underlying fundamentals remain robust. The bank reported a PAT growth of around 11% in Q3FY26, while asset quality stayed stable with GNPA at 1.24% and NNPA at 0.42%. The lender continues to maintain strong capital adequacy at approximately 19.9%, along with a controlled cost-to-income ratio.

The bank has also shown healthy loan and deposit growth, reinforcing its balance sheet strength. According to analysts, the RBI’s statement confirming no material governance concerns adds further comfort to investors in the near term.

Operational Challenges Post Merger Persist

However, some operational challenges remain. HDFC Bank is still navigating post-merger adjustments, particularly a high loan-to-deposit ratio and relatively slower retail loan growth. Additionally, there has been some shift in market share toward large PSU banks, which could weigh on near-term performance.

These factors, combined with the recent leadership uncertainty, have kept investor sentiment cautious despite strong fundamentals.

The current correction appears to be driven more by sentiment than structural weakness. While the bank’s long-term strengths, such as its strong retail franchise and consistent execution track record, remain intact, near-term visibility depends on clarity around governance and leadership stability.

As of March 23, 10:41 am, the stock is trading around ₹755.45 and down 3.20% intraday from the previous close of ₹780.45. The focus remains on whether stability returns and sentiment improves in the coming sessions.