HDFC Bank shares rose nearly 2 per cent on Thursday from the 52-week low recorded in the previous trading session after the Reserve Bank of India approved Life Insurance Corp (LIC) to increase its stake in the private lender to up to 9.99 per cent. The stock had hit a 52-week low of ₹715.10 in the previous trading session.
HDFC Bank shares’ weekly performance
The RBI approval was disclosed by HDFC Bank late on Wednesday. LIC held a 4.11 per cent stake in HDFC Bank as of August 14, the bank said in an exchange filing.
HDFC Bank is also tapping the dollar bond market for the second time in two months, according to a Reuters report. The lender is looking to raise at least $500 million each through three-year and five-year bonds via its GIFT City branch, bankers told Reuters.
The fundraising comes as banks seek to complete overseas fundraising before a special central bank FX swap window closes, the report said.
Stock performance
At around 10.16 am, the stock was up 1 per cent to ₹727.55 on the NSE, after rising to ₹728.30. It had hit a fresh 52-week low of ₹715.10 on Wednesday. Trading volume stood at 49.50 lakh shares, with traded value at ₹359.72 crore. The stock was up 0.27 per cent over one week, but remained down 6.51 per cent over one month, 26.66 per cent YTD and 26.87 per cent over one year.
Adjusted for bonus issue in August 2025
The private lender completed its first-ever 1:1 bonus share issue in August 2025. The stock price adjusted to account for the doubled share count, leaving total portfolio value unchanged.
On the ex-date for the bonus issue, August 26, 2025, the stock was valued at ₹972.30. The stock had subsequently fallen by over 26 per cent from that level to its 52-week low of ₹715.10 recorded on August 19, 2026.
In its recent report, Kotak Institutional Equities said the re-rating of HDFC Bank is playing a key role in valuation discovery for banks.
The brokerage said it has seen a sharp re-rating in mid-tier private banks and regional banks, but finds valuations expensive for regional banks, considering their concentration of loan mix in gold loans. It also said mid-tier banks have a relatively weak RoE profile to justify further outperformance.
Kotak Institutional Equities said it prefers frontline private banks, including HDFC Bank and ICICI Bank, as well as SBI among public banks. It added that HDFC Bank’s valuation is playing an anchor to sector valuations at this stage.
Published on August 20, 2026
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