HDFC Bank shares drop 20% in 2026: Key updates to know ahead of Q4 results

The investment will be made through a preferential issue of equity shares of HDFC Life in one or more tranches.

The board of HDFC Life approved the issuance of 1,45,23,906 equity shares with a face value of ₹10 each, at a price of ₹688.52 per unit, aggregating up to ₹1,000 crore, on a preferential basis to its promoter, HDFC Bank.

The preferential issue will be on a private placement basis, in accordance with Chapter V of the SEBI ICDR Regulations, the firm noted.

HDFC Life stated that its board has decided to raise up to ₹1,000 crore through a preferential issue to its parent, HDFC Bank, to augment its solvency position, which currently stands at 177%.

HDFC Bank share price trend

Data show that HDFC Bank shares have slipped 1.66% over the past five sessions, 6% in one month, more than 20% in six months, and around 20% so far in 2026 (year-to-date).

The stock has been under pressure ever since Atanu Chakraborty, the part-time chairman and independent director of HDFC Bank, resigned on March 18, 2026, citing that certain bank practices did not align with his personal values and ethics.

The resignation was effective immediately, and Keki Mistry was appointed as the interim part-time chairman for three months, effective March 19, 2026.

HDFC Bank Q4 results

The leading private sector lender is slated to release its March quarter earnings on Saturday, April 18.

In its Q4 business update, the country's second-largest lender reported a 12% credit growth to ₹29.6 lakh crore for the March quarter.

Its total advances were ₹26.43 lakh crore at the end of March 31, 2026, HDFC Bank said in a regulatory filing.

The lender reported a 14.4% rise in total deposits to ₹31.05 lakh crore from ₹27.14 lakh crore at the end of the fourth quarter of the preceding financial year.

During the period, CASA deposits recorded a growth of 12.3% to ₹10.6 lakh crore compared to ₹9.4 lakh crore in the year-ago period, it said.

The bank's period-end time deposits were approximately ₹20.45 lakh crore as of March 31, 2026, a growth of around 15.5% over ₹17.7 lakh crore as of March 31, 2025.

Latest updates after Chakraborty's resignation

Following the abrupt resignation of Chairman Atanu Chakraborty, citing ethical concerns, HDFC Bank has initiated an independent review by external law firms to ensure transparency and uphold its governance standards.

Why HDFC Bank appointed external law firms

The bank's spokesperson said the appointment of external law firms is a proactive measure taken by the bank to independently look at the aspects mentioned in the letter so as to ensure an objective and fact-based assessment.

This step is aimed at constantly benchmarking against the highest governance standards that the bank has practised over decades, the spokesperson added.

This was the first time that the part-time chairman of HDFC Bank left midway, raising concerns over its functioning.

What RBI said

In early April 2026, RBI Governor Sanjay Malhotra said the Reserve Bank of India (RBI) did not come across any governance or conduct-related issues during the supervisory inspection of HDFC Bank.

Responding to a question at the post-monetary policy press conference on the sudden resignation of HDFC Bank Chairman Atanu Chakraborty and the subsequent fall in its share price, Malhotra said the RBI had also seen the minutes of meetings of the lender, and the RBI did not find anything of material concern.

Malhotra said the RBI, in its press release on March 19, too had said there were no material concerns on record as regards the bank's conduct or governance.

"HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, a professionally run board, and a competent management team. Based on our periodical assessment, there are no material concerns on record as regards its conduct or governance," the RBI said in its press release.