Why HDFC Bank shares falling today? Key factors to watch

HDFC Bank’s stock had hit a 52-week low of ₹715.10 on August 19, 2026.
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HDFC Bank shares remained in focus on Tuesday, with the stock dipping to ₹724.50 on the NSE from its previous close of ₹729. At 10.28 am, the stock traded at ₹727.30, moving between ₹724.50 and ₹728.70 in early trade.

HDFC Bank shares dip

At the time of writing, buy quantity stood at 9,14,695, while sell quantity was 15,80,297, as per the NSE. Total traded volume stood at 23.65 lakh, with traded value at over ₹172 crore. The bank’s total market capitalisation stood at ₹11.21 lakh crore, while its adjusted P/E ratio was 14.02.

The stock had hit a 52-week low of ₹715.10 on August 19, 2026. Over a week, its absolute returns stood at 0.62 per cent, while over one month, the stock was down 2.06 per cent.

JM Financial view

JM Financial, which analysed HDFC Bank’s FY26 performance based on its annual report, Basel-III and other disclosures, said asset quality improved across retail and services, while agriculture emerged as a key stress pocket.

The brokerage said the rising share of D1/D3 assets remained monitorable ahead of ECL implementation. It also described balance-sheet risk trends as mixed, with reduced borrower and NPA concentration and a rising share of better-rated corporates as key positives, while higher exposure to commercial real estate and capital market loans and a sharp rise in contingent liabilities were key negatives.

JM Financial said liabilities remained a key focus area, with a falling retail deposit share, higher reliance on wholesale funding and moderation in LCR. Legacy e-HDFC borrowings continued to decline, while the bank gained 33 bps in overall deposit market share.

The brokerage said RIDF exposure reduced further as overall PSL compliance remained healthy, although dependence on PSLC for SMF obligations continued. It added that core fee income growth moderated, led by payments and third-party income.

JM Financial maintained its add rating on HDFC Bank and revised its target price to ₹800 from ₹900 earlier.

Asset quality

JM Financial said asset quality trends were stable during FY26. Stress improved across the services and retail portfolios but deteriorated further in agriculture, driven by higher delinquencies in animal husbandry and select PSL segments.

The brokerage said credit cost in the agriculture portfolio increased, while the rising share of ageing NPAs warranted monitoring as the bank transitions to the ECL framework.

Balance sheet risk

On balance-sheet risk, JM Financial said borrower concentration continued to decline, with a falling share of the top 20 borrowers and exposures, while concentration of stressed assets reduced sharply.

Unsecured loans were stable y-o-y at ~21.5 per cent of advances, while A-and-above rated corporate exposures increased in FY26. However, exposure to commercial real estate and capital markets rose to 7.3 per cent and 2.7 per cent of loans, respectively.

Contingent liabilities increased ~29 per cent y-o-y in FY26, compared with 15 per cent growth in FY25, primarily due to a jump in forward exchange contracts.

Deposit, fee trends

JM Financial said retail deposit share declined further, while HDFC Bank increased reliance on Certificate of Deposit issuances to bridge funding requirements. LCR moderated to 114 per cent.

The brokerage noted that legacy e-HDFC borrowings continued to decline, with 20 per cent of these borrowings, or 9 per cent of total borrowings, eligible for repricing over the next two years. The bank gained 33 bps y-o-y in overall deposit market share.

JM Financial said stronger organic PSL growth improved compliance and reduced the drag from RIDF balances. RIDF as a percentage of loans declined to 3.2 per cent from 4.1 per cent in FY25, while the bank continued to face a shortfall in the SMF category, requiring PSLC purchases.

The brokerage also said FY26 non-interest income growth was boosted by treasury and investment gains, including the HDB Financials stake sale. Underlying fee income growth moderated to 9 per cent in FY26 from 13 per cent in FY25, led by a slowdown across payments, third-party products and investment management.

ICICI Bank overtakes HDFC Bank in dollar bond fundraising

Separately, reports cited ICICI Bank was tapping the US dollar-denominated bond market for the fourth time in a month under the central bank’s discounted window. The latest placement would take ICICI Bank’s aggregate funds raised under the Reserve Bank of India’s discounted window to $3.05 billion, according to Reuters.

The report said that ICICI Bank had overtaken HDFC Bank, which had raised an aggregate of $2.50 billion so far.

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Published on August 25, 2026