Synopsis
Shares of HDFC Bank fell on Monday ahead of Q1FY27 results this week, wiping out around Rs 21,500 crore of market value. Even though the lender reported strong loan growth in its business report, investors will closely monitor earnings, asset quality, margins and management commentary for signs of sustained growth.
AND onlineActions of HDFC Bank fell nearly 2% on Monday, wiping around Rs 21,500 crore from the lender’s market capitalization and weighing on the broader market, making it one of the biggest contributors to the day’s decline.
After the open, HDFC Bank shares fell to Rs 811 apiece, ending a two-session winning streak. The market capitalization of India’s largest private lender fell to Rs 12.49 lakh crore.
HDFC Bank is all set to release its results for the April-June quarter of FY26 on Saturday. Shares saw strong gains last week after the company released its first quarter business update, reporting gross advances of Rs 30.61 lakh crore at the end of the April-June quarter of FY27, an increase of 15.4 per cent year-on-year (YoY) from Rs 26.53 lakh crore reported in the corresponding quarter of the previous financial year. Its end-of-period advances under management stood at around Rs 31.27 lakh crore as on June 30, 2026. This implies a growth of around 12.4% year-on-year compared to the reported Rs 27.82 lakh crore under management as on June 30, 2025.
Also read: HDFC Bank Q1 Business Update | Gross advances rise 15% to Rs 30.61 lakh crore
What should we expect from HDFC Bank’s first quarter results?Motilal Oswal Financial Services said its channel is verifying the signal of strong credit demand from MSMEs in the April-June quarter of the current FY27, with an increase in the working capital cycle. The share of private banks is higher among larger ticket sizes, while public sector banks are gaining additional market share through competitive pricing and loans guaranteed by CGTMSE, the domestic brokerage added.
HDFC Bank has been named as one of Motilal Oswal’s top picks in the banking sector. The national brokerage said the private lender is doing well in the HCV and MHCV segments. It is also among its top picks for the home loan segment and in terms of asset quality. Shares of India’s largest private lender have gained over 7% in a month, but are down 20% so far in 2026. Motilal Oswal has a ‘Buy’ call on HDFC Bank shares with a price target of Rs 1,100 a piece.
HDFC Bank cuts its workforce in the face of the development of AIHDFC Bank reduced its headcount by 3,343 people, or 1.56 per cent, to 2.11 lakh in FY2026 from 2.15 lakh reported at the end of the previous financial year, according to its FY26 annual report. The company’s total employee expenses stood at Rs 26,050 crore. The percentage of women in the workforce increased to 26.6% at the end of FY26, up from 26.1% at the end of FY25.
“At HDFC Bank, we have built a strong digital foundation over the years. Today, the nature of capacity building on this foundation is evolving. Artificial intelligence, particularly GenAI, is emerging as a defining force in the next phase of the banking industry,” said Keki M Mistry, Acting Chairman of the lender.
He added that the lender’s approach to artificial intelligence has been deliberate and measured. It views AI not as a standalone capability, but as an integrated capability that will increasingly influence the evolution of banking services. This requires a focus on building systems that can adapt, learn and improve over time, supported by a unified internal foundation, ‘Neev’, which enables consistency, scale and disciplined deployment of capabilities across the Bank through structured programs, Mistry added.
HDFC Bank Real Estate ExpoHDFC Bank’s annual report for FY26 shows that the bank’s exposure to the real estate sector stood at over Rs 10 lakh crore as on March 31, 2026. This represents an increase of 8% from the Rs 9.26 lakh crore reported in the corresponding period of the previous year. Notably, the bank’s total advances stood at Rs 29.37 lakh crore at the end of FY26.
Residential mortgages accounted for the largest share of the real estate portfolio at Rs 7.39 lakh crore. Commercial real estate mortgages, meanwhile, stood at Rs 2.13 lakh crore. The company also reported Rs 50,844 crore of exposures to National Housing Bank (NHB) and Housing Finance Companies (HFCs).
HDFC Bank share priceHDFC Bank shares fell more than 1.5% in a week but gained almost 6% in a month. The stock is down about 18% in 2026 so far. Over the longer term, the stock fell about 18% in one year, but gained 9% in five years.
Also read: Motilal Oswal’s Top 4 Banking Picks Ahead of Q1 Earnings Season. Do you own any?
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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