HDFC Bank shares jump over 5% in 5 sessions; latest developments you need to know

HDFC Bank shares are expected to be in focus on Tuesday, June 16, following favourable news and analysts' reports.

Nomura, in its latest report, said that market concerns that have weighed on HDFC Bank are not independent problems and that the Reserve Bank of India's proposed FCNR(B) deposit scheme could make HDFC Bank a potential standout beneficiary.

The financial services firm said that concerns weighing on the lender — including deposit growth lagging expectations, a credit-deposit (CD) ratio above management guidance, the lowest liquidity coverage ratio (LCR) among large private sector peers, and a higher reliance on short-term wholesale funding — are not independent issues but different manifestations of the same underlying challenge.

Nomura believes the RBI's proposed FCNR(B) deposit scheme could address these concerns through a single channel, making HDFC Bank a potential standout beneficiary.

According to the investment firm, HDFC Bank could attract around 15% of the overall FCNR(B) inflows, equivalent to nearly 3% of its current deposit base, providing a meaningful boost to its funding profile and liquidity position.

What you need to know about RBI's proposed FCNR(B) deposit scheme

The FCNR(B) (Foreign Currency Non-Resident Bank) deposit scheme allows non-resident Indians (NRIs) to park their money in Indian banks in foreign currencies such as the US dollar, pound sterling, euro, or yen.

On June 8, the RBI introduced a US dollar-rupee forex swap facility for fresh FCNR (B) deposits mobilised by banks for a minimum tenor of three years and a maximum of five years to attract foreign capital.

Foreign Currency Non-Resident (Bank) deposits are foreign currency term deposits maintained by non-resident Indians (NRIs).

Under the swap arrangement, a bank can sell US dollars in multiples of USD one million to the RBI and simultaneously agree to buy the same amount of US dollars at the end of the swap period, a central bank circular said.

The swap facility will be available to the AD Category I banks for fresh FCNR (B) deposits mobilised in any freely convertible currency, including deposits that are renewed upon maturity, for a minimum tenor of three years and a maximum tenor of five years.

However, the swap facility with RBI will be available in US dollars only.

For banks, FCNR(B) deposits provide a relatively stable source of funding without exposing depositors to rupee depreciation risk.

Why HDFC Bank is in focus

HDFC Bank is seen as a potential major beneficiary because it has one of the largest NRI banking franchises in the country and an extensive overseas reach.

According to Nomura, the bank could attract around 15% of the overall FCNR(B) inflows.

An increase in such deposits would help HDFC Bank strengthen its deposit base, improve its credit-deposit ratio, enhance liquidity, and reduce its dependence on short-term wholesale funding—all key concerns that investors have been tracking since the HDFC-HDFC Bank merger.

Other developments to know

"Based on the review conducted so far, the law firms have not identified any evidence to substantiate the concerns referenced in the former chairman's resignation letter. Their findings have been communicated to the bank's legal team informally and are expected to be placed before the Audit Committee shortly," the report added, citing sources.

In March 2026, Atanu Chakraborty resigned from the country's second biggest lender, citing ethical concerns. This was the first time that the part-time chairman of HDFC Bank left mid-way, raising concerns over its functioning.

"Certain happenings and practices within the bank, that I have observed over the last two years, are not in congruence with my personal values and ethics. This is the basis of my aforementioned decision," Chakraborty said in his resignation letter dated March 17.

In a letter addressed to the Chairman of the Governance, Nomination, Remuneration Committee, H K Bhanwala, Chakraborty said that "There are no other material reasons for my resignation other than those stated above."

In a late evening filing, HDFC Bank said Chakraborty has on March 18, 2026, tendered his resignation as the Part-time Chairman and Independent Director of the Bank with immediate effect.

What the RBI said

Hours after the resignation of HDFC Bank Chairman Atanu Chakraborty citing ethical concerns, the RBI 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 Reserve Bank of India (RBI) said in a statement.

The statement emphasised that the bank remains well-capitalised and its financial position remains satisfactory with sufficient liquidity.

HDFC Bank stock performance

Shares of HDFC Bank have rallied over 5% over the past five sessions. On Tuesday, in the early trade, the stock was trading in the green.