On the first trading day of the week, the eyes of Dalal Street will be on the country’s largest private bank, HDFC Bank. Recently the bank released business figures for the first quarter of the financial year 2026-27 (Q1 FY27). Due to the turmoil within the bank in the last few months and concerns related to corporate governance, there were many questions in the minds of investors. But, these figures have made it clear that the infrastructure of the bank is still very strong. From deposits to loan distribution, the bank has registered a bumper growth. In such a situation, when the market opens on Monday, huge movement can be seen in this stock.
Statistics show strength, pace of loan distribution fast
The success of any bank in the business world depends on how fast and how safely it is distributing loans. The new figures of HDFC Bank have brought great relief on this front. There has been a significant increase of 15.4 percent in the gross advances of the bank as compared to the same period last year. This figure has jumped from Rs 26.53 lakh crore to Rs 30.61 lakh crore. At the same time, the total advance under the management of the bank till June 30, 2026 has been recorded at about Rs 31.27 lakh crore. This is about 12.4 percent more than last year’s Rs 27.82 lakh crore. If seen from the perspective of a common investor, it simply means that the core business of the bank is growing rapidly and its hold in the market remains the same.
Investors’ lost confidence is returning in the stock market
The last few months have been very stressful for the shareholders of HDFC Bank. Since the beginning of the year 2026, this giant stock disappointed investors and saw a decline of more than 19 percent. However, now the situation seems to be gradually changing. If we look at the performance of the last one month, this stock has recovered by more than 6 percent. This is a clear indication that buyers are returning at lower levels and investor confidence is being restored. On Friday also, this share had closed at the level of Rs 801.05 with a slight increase of 0.6 percent. With a market cap of more than Rs 12.34 lakh crore, it remains a very important player in the stock market even today.
Shadow of controversies dispelled, hope raised from new management
This year the bank was discussed not only because of its financial figures but also because of the internal turmoil. There was a stir in the month of March when former chairman Atanu Chakraborty suddenly resigned from his post. He had clearly stated in his resignation letter that some of the bank’s practices did not match his personal values and ethics. This one statement created panic in the market and there was heavy selling in the bank’s shares.
But, now the bank has taken many big steps to save its reputation and win the trust of investors. Former IAS officer and former Chief Election Commissioner Rajiv Kumar has been appointed as the new part-time (non-executive) chairman of the bank, sending a positive message regarding governance. Along with this, Jigar Shah, who has worked in a renowned firm like KKR to streamline compliance and legal matters, has been given the responsibility of General Counsel. Whereas, Puneet Sharma has been elected as the next CFO (CFO-Designate). He will start his work from September and will take over this important responsibility completely by December.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
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