The brokerage, however, has retained its ‘Outperform’ rating on the stock with a price target of ₹1,200.
It said that while the bank’s fundamentals remain strong, with healthy return on assets (ROA), near-term underperformance may persist as governance concerns weigh on sentiment.
Macquarie added that investors are likely to seek greater comfort from the board. It also cited uncertainty around CEO Sashidhar Jagdishan’s reappointment, with his current term set to end in October 2026, as another overhang.
Keki Mistry, who has been appointed interim part-time Chairman following Chakraborty’s resignation, said the Nomination and Remuneration Committee will take up the matter at an appropriate time.
The brokerage cited key risks including a potential slowdown in growth and the possibility of further governance issues.
Meanwhile, JPMorgan Chase has maintained a ‘Neutral’ rating on HDFC Bank with a price target of ₹1,090. It said Chakraborty’s exit adds to existing macro headwinds and could weigh on sentiment, leading to elevated volatility in the near term.
JPMorgan said that the reasons cited for the resignation raise concerns about possible disagreements between the board and management, which could impact cohesion and future decision-making.
In his resignation letter, Chakraborty said certain developments and practices within the bank over the past two years were not aligned with his personal values and ethics, prompting his decision to step down.
Shares of HDFC Bank are trading 4.5% lower on Thursday, though off intraday lows. The stock has declined 20% so far in 2026.
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