HDFC Bank share price dips 25% in YTD. Should you buy after a strong financial update?

HDFC Bank shares have been under pressure over the last few weeks, especially after the abrupt resignation of part-time Chairman Atanu Chakraborty on 18 March 2026, citing ethical and value-based reasons. However, the controversy surrounding India's largest private lender showed no signs of abating, as Atanu Chakraborty's resignation was soon followed by reports indicating potential action against 12 more executives over the alleged mis-selling of additional tier-1 (AT-1) bonds. However, despite these controversies, HDFC Bank reported strong growth in advances, deposits and CASA on Saturday, 4 April 2026.

What's wrong with HDFC Bank?

Speaking on the fundamentals of HDFC Bank shares, Hariprasad K, a SEBI-registered Research Analyst & Founder of Livelong Wealth, said that HDFC Bank’s recent underperformance reflects a convergence of internal adjustments and external pressures rather than a deterioration in its core franchise. The stock has been caught in a “reset phase” following the HDFC Ltd merger, where balance sheet normalisation has taken priority over aggressive growth. Elevated credit-deposit ratios and margin compression have forced the bank to slow loan expansion and compete harder for deposits, weighing on near-term profitability and investor expectations.

Experts said that HDFC Bank has reported solid YoY growth in average advances, deposits, and CASA. So, it is an opportunity for bottom fishing as the bank's strong fundamentals are strongly reflected in its balance sheet.

“At the same time, the sudden leadership exit and governance-related noise have unsettled institutional confidence, even in the absence of any material regulatory red flags, leading to valuation de-rating. This has been further amplified by a risk-off global environment, where rising crude prices, currency pressure, and sustained FII outflows have disproportionately impacted large-cap financials,” the SEBI - registered Research Analyst said.

Speaking on the current controversies surrounding HDFC Bank, Sandeep Pandey, Co-founder of Basav Capital & former Deputy Vice President of HDFC Bank, said that the fundamentals of the HDFC Bank-like organisation don't change after the resignation of a part-time Chairman.

“AT-1 bond row is also very small from the monetary perspective, and it won't have much impact on the balance sheet of the private lender. In fact, the recent dip in HDFC Bank shares is a golden opportunity for long-term investors, who believe in fishing out stocks available at a discounted price,” said Sandeep Pandey.

On the recent controversies surrounding HDFC Bank, Hariprasad K said it is less a case of structural weakness and more a period of transition, with the bank recalibrating post-merger while navigating a challenging macro environment.

HDFC Bank share price target

Speaking on the technical outlook of the HDFC Bank shares, Hariprasad K of Livelong Wealth said that recent price action shows an attempt to stabilise near key support levels around ₹740 to ₹750; the sustainability of this recovery remains uncertain. Immediate downside risk persists towards the ₹680 zone if supports fail, while any meaningful upside is likely to face resistance in the ₹800 to ₹820 range.

HDFC Bank financial update

In an exchange filing on Friday, the HDFC Bank Ltd has update Indian bourses about its financials, saying, “The Bank’s average advances under management (advances grossing up for inter-bank participation certificates, bills rediscounted and securitisation / assignment) were ₹29,644 billion for the March 2026 quarter, a growth of around 10.0% over ₹26,955 billion for the corresponding March 2025 period.”

The Bank’s period-end advances under management were approximately ₹30,575 billion as of March 31, 2026, up around 10.2% from ₹27,733 billion as of March 31, 2025. The Bank’s period-end gross advances aggregated to approximately ₹29,600 billion as of March 31, 2026, a growth of around 12.0% over ₹26,435 billion as of March 31, 2025.

The Bank’s average deposits were ₹28,511 billion in the March 2026 quarter, up around 12.8% from ₹25,280 billion in the corresponding period. The Bank’s average CASA deposits were ₹9,184 billion in the March 2026 quarter, up around 10.8% from ₹8,289 billion in the corresponding March 2025 period.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.