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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Amid the rout in the stock, no one is talking about the private sector lender’s alarmingly high credit-deposit ratio—a key measure of stability—and the management’s lax approach to the problem.
On 16 January, HDFC Bank announced its results for the December quarter of the ongoing fiscal. The event’s focus was on the private sector lender’s better-than-expected performance on the earnings front.
Brokerages rushed to issue buy recommendations on the stock, setting a price target of over Rs 1,800 a share. Broking firm Prabhudas Lilladher raised it a few notches—Rs 2,000.
What happened the next day, however, dampened all the cheer around the results. The bank’s shares tumbled 8%, setting off a downward spiral that hasn’t seen a respite yet. The following week, BNP Paribas Arbitrage sold 2 million shares of …
Aggressive expansion, continued dependence on its parent for business, and an adverse shift in the product mix weigh on profitability as well as investor sentiment.
The beleaguered lender outperformed larger rivals—and itself—on several metrics in FY26, but one-offs and a still weak retail engine keep its investors on edge.
Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
