loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

HDFC Bank: Valuation multiple at decadal low; leadership clarity key for re-rating

ICICIdirect Research 28 Aug 2026 DISCLAIMER

Yet another week saw HDFC Bank remain in focus for another legal and reputational concerns adding to the existing governance and leadership overhang. ~70 investors raised complaints regarding distribution of a Luxembourg-based fund through its UAE/Bahrain operations during 2017–19, wherein the bank is said to mobilize ~US$100 million (~₹940 crore) from customers. The bank has denied mis-selling, maintaining that it only facilitated investments in a third-party fund.
Separately, the bank is considering an NCLAT appeal against Subhash Chandra’s personal insolvency plan, which proposes merely ₹6.25 crore recovery against ₹22,006.6 crore of admitted claims. HDFC Bank’s exposure is limited to ~₹700 crore (~3.2%), inherited from erstwhile HDFC Ltd. Given the legacy and stressed nature of the exposure, the amount is likely to have been substantially/fully provided for, and hence the incremental financial impact is expected to remain limited.
HDFC Bank stock is trading at 52-week low with valuation multiple at decadal low level at ~1.5x on FY28 standalone book value. Leadership remains the key near-term monitorable, with MD & CEO Sashidhar Jagdishan’s current term ending on October 26, 2026. While it is difficult to ascertain outcome of decision on extension, a full-term renewal could remove a key overhang, and thus act as catalyst for valuation. However, a short-term extension of 6-12 months could prolong leadership uncertainty and delay scope for re-rating.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere