The HDFC Bank logo is visible in this illustration. (FILE PHOTO) | Photo credit: Dado Ruvic
Shares of India’s largest private sector lender HDFC Bank fell 5.12% to ₹777.60 apiece on Monday (July 20, 2026) on the NSE due to investor concerns over the bank’s first quarter (Q1FY27) performance.
The fall resulted in a loss of ₹74,250 crore in shareholder wealth in a single day. The bank’s total market capitalization fell to ₹11,88,000 crore from ₹12,62,250 crore on Friday, according to NSE data.
On Saturday, the bank reported a 5% rise in net profit to ₹19,060 crore, which was seen as below market expectations.
While HDFC Bank posted a 5% rise in net profit in the first quarter, its rivals ICICI Bank and Axis Bank, which also announced results on Saturday, reported net profit growth of 16% and 23% respectively to ₹14,805 crore and ₹7,114 crore.
The comparison highlighted HDFC Bank’s poor performance, analysts said.
While HDFC Bank reported rising profits and healthy expansion in loans and deposits, investors reacted negatively as the bank’s net interest margin (NIM) is a key performance matrix. fell to 3.26% or significantly below the level seen before the bank’s merger with HDFC Ltd.
This was due to rising cost of funds, intense competition for deposits and pressure on loan yields, analysts said, adding that this will continue to weigh on the bank’s performance in the coming quarters.
Following the release of the results, several brokerages downgraded HDFC Bank’s ratings, adding to the negative sentiment in the market.
The bank has been under scrutiny since former chairman Atanu Chakraborty abruptly resigned over ethical concerns. The bank has appointed former finance minister Rajeev Kumar as its new concurrent chairman. The RBI has approved the appointment. He also appointed Puneet Sharma as the new chief financial officer, replacing existing chief financial officer Srinivasan Vaidyanathan, who will retire in November.
Broader market conditions further exacerbated the decline, analysts said. Markets were already under pressure due to rising crude oil prices and geopolitical tensions in West Asia, which had investors worried.
Published – Jul 20, 2026 9:33 pm EST.