HDFC Bank shares down 20% in 2026 so far. Time to buy as the governance cloud clears up?

HDFC Bank shares are down 20% in 2026 so far following March's governance controversy that wiped out about Rs 1.6 lakh crore in market value across three sessions after former part-time Chairman Atanu Chakraborty resigned citing ethical concerns. The lender has since appointed Rajiv Kumar as new part-time Chairman, Puneet Sharma as CFO-designate, and Jigar Shah as general counsel, while an independent legal review found no substantiated allegations and the RBI flagged no material governance concerns. Analysts are divided on fresh entry at current levels around Rs 800, with sell-side targets of Rs 940-1,100, though Axis Direct prefers ICICI Bank and Kotak Mahindra Bank over a fresh position in HDFC Bank.