Is HDFC Bank A 'Buy' After Atanu Chakraborty's Exit? Price Target and Expert Stock Advice

After the exit of HDFC 's part-time Chairman, Atanu Chakraborty, the private lender's shares fell 2% on Friday, extending losses for a second consecutive session.

The Mumbai-headquartered bank closed the previous week, hitting a 52-week low of Rs 772 apiece.  In March, HDFC Bank shares have shredded over 10%.

In an investor's call held after Chakraborty exit, India's biggest private lender reassured investors that there have been no regulatory lapses and denied any power struggle among the Board or executives.

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HDFC Bank Shares: Should You Buy, Sell Or Hold?

ICICI securities maintained the target price of Rs 1,120 for HDFC Bank shares, valuing the stock at ~2.2x FY28E core.

"We believe the cohesiveness of the Board and management is critical. We concur with management that the issue appears to be more interpersonal. Maintain BUY given the bank’s superior track record, conservative risk practices and historically low valuations," ICICI Securities noted.

Notably, it pointed out that risks include any sudden churn in Board / senior personnel and slower-than-expected deposit mobilisation.

HDFC Bank has seen a sharp de-rating in the last few months, partly led by macro concerns. In the near term.

"We expect the bank to deliver higher-than-system deposit growth (6-7% QoQ) and loan growth (4-5% QoQ) in line with the system, which should support a re-rating. We highlight that the stock is trading at all-time low valuations of ~1.7x forward book; thus, downside appears minimal," it noted.

HDFC Chairman Resigns Abruptly with Adverse Remarks

Atanu Chakraborty, part-time chairman and independent director, resigned on 18th Mar’26 ahead of his term.

He was first appointed in Apr’21 for a period of three years and was re-appointed in May’24 for another three-year term. Mr. Chakraborty, earlier, served the Government of India in areas of Finance & Economic Policy, Infrastructure, and Petroleum & Natural Gas.

His resignation letter stated, “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” as the basis of his decision.

At the same time, the RBI has approved the appointment of Keki Mistry as an interim part-time chairman for three months.