Buy HDFC Bank; target of Rs 1100: Motilal Oswal

Buy

Motilal Oswal's research report on HDFC Bank

Mr. Atanu Chakraborty, Part-time Chairman and Independent Director of HDFC Bank, tendered his resignation on 18th Mar’26 with immediate effect. In his resignation letter, Mr. 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. The bank has clarified that there are no governance, operational, or regulatory issues that have been brought to the board’s attention prior to the resignation. The RBI has also endorsed the bank’s governance record, saying that “there are no material concerns on record as regards to its conduct or governance. Mr. Chakraborty, a former secretary in the Ministry of Finance and a seasoned policymaker, brought deep regulatory insight and institutional experience to the board. During his tenure, he played a key role in strengthening governance oversight and supporting the bank through its transformational merger with HDFC Ltd.

Outlook

We maintain our earnings estimates and expect RoA/RoE at 1.9%/14.5% by FY27E. Retain BUY with a TP of INR1,100 (2.2x FY28E ABV + INR137 for subs).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

HDFC Bank - 2003026 - moti