HDFC Bank’s stock price rose more than 2.5% today following a strong Q1 business update that beat market expectations
HDFC Bank shares surged sharply during early trading on Monday, July 6, 2026. The stock price of India’s largest private sector lender rose more than 2.5%, reaching an intraday high of ₹824.45 on the Bombay Stock Exchange and ₹824.50 on the National Stock Exchange. This positive market movement came shortly after the bank released its provisional business update for the first quarter of the 2027 financial year.
Regulatory filings revealed that the banking giant’s lending and deposit portfolios experienced substantial double-digit growth. According to exchange data, the bank’s gross advances as of June 30, 2026, increased by 15.4% year-on-year to ₹30.61 lakh crore. This is significantly higher than the ₹26.53 lakh crore reported in the same quarter of the previous fiscal year.
The bank’s total assets under management also saw an increase, surpassing ₹31.27 lakh crore. This represents a consistent increase of 12.4% compared to ₹27.82 lakh crore recorded a year ago. Market analysts noted that the growth in loan volumes exceeded general expectations, significantly boosting investor sentiment.
Performance on the liabilities side was equally strong, supporting the lender’s continued efforts to balance its loan-to-deposit ratio. Term-end deposits increased 14.7% year-on-year to ₹31.71 lakh crore. In this segment, current account savings account (CASA) deposits grew 9.4% to reach approximately ₹10.26 lakh crore at the end of the quarter.
Top global and domestic brokerages reacted positively to these numbers and issued positive outlooks for the banking stock. Morgan Stanley maintained its “overweight” rating with a target price of ₹1,025, citing attractive historical valuations and a healthy growth outlook. Bernstein also maintained its “outperform” stance and set a higher long-term price target of ₹1,150.
This strong business performance has brought relief to the banking giant, which faced significant difficulties earlier this year. Despite the recent recovery, the stock is down nearly 19% so far in 2026. Downward pressure intensified following the sudden resignation of former part-time chairman Atanu Chakraborty in March, who stepped down due to governance concerns.
The bank has since addressed those governance issues. An independent legal review recently cleared the board, finding no evidence to support the former chairman’s allegations. To ensure administrative stability, the bank appointed former Chief Election Commissioner Rajiv Kumar as its new part-time chairman for a three-year term.
Internal leadership structuring is underway ahead of the bank’s upcoming full earnings release on July 18, 2026. The board recently finalized the appointment of Puneet Sharma as Chief Financial Officer-Designate, who will officially assume charge in December. Additionally, Jigar Shah has been brought on as General Counsel to head the firm’s legal operations.
Disclaimer: All the information provided in this article is for educational and infomational purposes only. DateUpdateGo always advises seeking guidance from a certified financial advisor before making any investment-related decisions.