HDFC Bank Share Price Today, 2 December 2025: Profit-Taking Hits Heavyweight Stock, but Analysts Still See Double-Digit Upside

HDFC Bank Limited, India’s largest private-sector lender by market value, slipped in Tuesday’s trade as investors booked profits in financial stocks after the indices hit record highs on Monday. The weakness comes despite broadly positive analyst sentiment, resilient earnings and multiple valuation models still pointing to upside potential in 2026.

As of late morning on 2 December 2025, HDFC Bank shares were trading around ₹990–995 on the NSE, down roughly 1–1.5% from Monday’s close of ₹1,007.6. ^[1] The stock remains close to its 52-week high of about ₹1,020 and well above the 52-week low near ₹810. ^[2]

At the index level, the Nifty 50 and Sensex were down around 0.4–0.5% by mid-morning, with HDFC Bank and ICICI Bank among the biggest drags. ^[3]

HDFC Bank Share Price Today: Key Market Snapshot (2 December 2025)

Recent liveblog and market data give a fairly consistent picture of how HDFC Bank is trading today:

Spot price: Around ₹990–995, down roughly 1.0–1.5% intraday. ^[4]
Previous close: ₹1,007.6 on 1 December 2025. ^[5]
Intraday range so far: Roughly ₹985–995 according to live data. ^[6]
52-week range: High around ₹1,020–1,020.5; low around ₹810–812. ^[7]
1-year return: About 12–13%. ^[8]
Market capitalisation: Roughly ₹15.4–15.5 lakh crore, making it one of India’s top three listed companies. ^[9]

Mint’s market stats page pegs HDFC Bank’s year-to-date gain at about 13.3%, with a five-day return of 0.3%, reinforcing the view that today’s move is a modest pullback within a broader uptrend. ^[10]

On valuation metrics:

Trailing P/E: ~20–22x earnings (Mint: 20.12x; Screener: 21.8x). ^[11]
Price-to-book: Around 2.8–3.0x. ^[12]
Dividend yield: ~1.1–2.2%, depending on the data source and period. ^[13]

These numbers place HDFC Bank at a premium to the broader banking sector (Mint shows sector P/E near 9x), but in line with its long-term status as a high-quality compounder. ^[14]

Why HDFC Bank Stock Is Under Pressure Today

Tuesday’s weakness in HDFC Bank is not an isolated story—it is part of a broader bout of profit-taking in financials after Indian benchmarks hit record highs on Monday.

Reuters reports that high‑weight financials fell about 0.8%, dragged by HDFC Bank (down 1.4%) and ICICI Bank (down 1.3%) as of 10:20 a.m. IST. ^[15]
India Today notes that at the open, HDFC Bank was the biggest loser on the Nifty, down about 1.2% at 9:26 a.m. as investors locked in profits near record index levels. ^[16]
NDTV’s live market blog similarly highlights HDFC Bank and ICICI Bank as key weights on the indices, with the rupee sliding to around ₹89.9–89.95 per dollar, adding to risk-off sentiment in financials. ^[17]
Moneycontrol’s broader market wrap attributes the Sensex’s roughly 350–400 point drop and Nifty’s slide towards 26,050 to selling in heavyweight bank stocks and persistent foreign fund outflows. ^[18]

In short, HDFC Bank isn’t falling because of any single bank-specific shock today; it is mainly a macro and positioning move:

Profit-booking near all‑time highs: Nifty and Sensex scaled 14‑month peaks on Monday and have struggled to extend those gains. ^[19]
Heavy index weight: Macquarie has previously pointed out that HDFC Bank is the highest‑weighted stock in the Nifty 50, so even modest selling in the name can drag the index. ^[20]
Currency weakness and global rates jitters: The rupee’s fresh low near ₹89.8–89.9 per dollar and worry over global bond markets have dented appetite for financials, which are sensitive to foreign flows and funding conditions. ^[21]

Equity strategists quoted by India Today and others frame this phase as consolidation, not the start of a structural downtrend, and even suggest that large‑cap financials may be accumulated gradually on dips given comfortable valuations and robust credit growth. ^[22]

Q2 FY26 Results: Solid Growth, Softer Margins

To understand the medium‑term story behind the daily volatility, it’s crucial to look at HDFC Bank’s latest reported quarter (Q2 FY26, quarter ended September 2025).

From the bank’s own investor presentation and compiled financial databases: ^[23]

Net profit: About ₹18,641 crore, up ~10.8% year-on-year.
Net interest income (NII): Around ₹31,551 crore, up ~4.8% YoY.
Net interest margin (NIM): Roughly 3.27%, slightly lower than the previous year, reflecting higher funding costs.
Gross NPA ratio: ~1.24%; Net NPA around 0.42–0.47%, indicating strong asset quality.
Deposit and loan growth: Double‑digit growth, with deposits continuing to expand and advances supported by retail and corporate lending.
Capital adequacy: Total capital adequacy around 20%, with Common Equity Tier 1 (CET1) around 17.5%, giving the bank substantial room to support growth. ^[24]

YES Securities’ Q2 FY26 note highlights: ^[25]

A higher cost-to-income ratio near 39%, up sharply year‑on‑year, partly due to integration and operating costs.
Evidence that NIMs have come off earlier peaks but appear to be stabilising.
Management guidance that the strong capital position will be leveraged for growth from FY27 onwards.

This dovetails with sector-level research from Nomura, which argues that the profitability down‑cycle in Indian banks—driven by several quarters of NIM compression and elevated credit costs—is now largely behind the sector. Q2 FY26 results across banks are seen as evidence that margins are bottoming out and the next phase could be earnings‑led. ^[26]

For HDFC Bank specifically, the story is:

Topline and profits are still growing at healthy double‑digit rates.
Margins are lower but stabilising.
Asset quality and capital remain strong.

These fundamentals are a big reason why analysts, even while acknowledging near‑term margin pressure, remain constructive on the stock.

Regulatory Overhang: RBI’s ₹91 Lakh Penalty

One recent piece of bank‑specific news that investors are watching is a regulatory penalty.

Late last week, the Reserve Bank of India imposed a ₹91 lakh penalty on HDFC Bank for multiple lapses, including: ^[27]

Non‑compliance with certain provisions of the Banking Regulation Act, 1949.
Issues related to interest rates on advances.
Deficiencies in adherence to outsourcing guidelines for financial services.
Violations and outsourcing‑related lapses in Know Your Customer (KYC) processes, including cases where KYC compliance was effectively outsourced to third‑party agents.

The penalty stems from a Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank as of 31 March 2024. After reviewing supervisory findings and the bank’s responses, RBI concluded a monetary penalty was warranted. Regulators emphasised that the penalty reflects compliance deficiencies, not the invalidation of specific customer transactions.

From a P&L standpoint, ₹91 lakh is immaterial for a bank generating quarterly profits in excess of ₹18,000 crore. ^[28] However, it does underline:

The heightened regulatory scrutiny on large systemically important banks.
The importance of operational controls, particularly around KYC and outsourcing.

Screener’s feed of BSE filings shows HDFC Bank responding with stock‑exchange intimations and clarifications, alongside routine corporate updates such as ESOP allotments. ^[29]

Management & Governance Updates: New CHRO Appointed

Corporate governance watchers have also noted a recent top‑level HR move:

On 28 November 2025, the bank notified exchanges that it has appointed Vibhash Naik—formerly CHRO at HDFC Life—as Chief Human Resources Officer of HDFC Bank, effective 1 February 2026. ^[30]

The move suggests ongoing investment in leadership depth and people processes as the bank digests its merger with HDFC Ltd. and scales further.

Analyst Ratings and Target Prices: 2026 Outlook

Despite near‑term volatility and margin pressure, the sell‑side remains overwhelmingly positive on HDFC Bank.

Domestic brokerage consensus

Data compiled by platforms such as Mint, Moneycontrol, Trendlyne and INDmoney show: ^[31]

Coverage: Roughly 35–40 analysts actively cover the stock.
Rating split (Mint / Moneycontrol style breakdown):
- Strong Buy + Buy: Well over 80–90% of analysts.
- Hold: A small minority.
- Sell: Virtually none.
Average 12‑month target price:
- INDmoney’s S&P Global consensus: about ₹1,164 per share, implying roughly 16% upside from around ₹1,000.
- Trendlyne data (from mid‑November) shows a consensus near ₹1,125, implying 12–13% upside, with the lowest target near ₹1,046 and the highest around ₹1,400. ^[32]

Specific high‑profile calls include:

Macquarie: Maintains an “Outperform” rating with a ₹1,200 12‑month target (around 20% above late‑November prices). The brokerage expects 18–20% compounded EPS growth over the next two years, driven by improving loan growth, stabilising margins and gradually falling cost ratios as integration and tech investments mature. ^[33]
Other bullish houses: Earlier in the year, brokers like CLSA had floated even higher long‑term targets (around ₹2,300), essentially arguing that the market was underestimating HDFC’s medium‑term earnings power post‑merger. These targets pre‑date the most recent run‑up and margin compression and should be seen as aggressive, longer‑term scenarios rather than base cases. ^[34]

Third‑party analysis from Analytics Insight, drawing on Moneycontrol’s analyst poll, notes that about 74% of 39 analysts rate HDFC Bank a “Buy”, 21% “Outperform” and only 5% “Hold”. Their thesis is that the stock is set for a gradual recovery as credit growth and margins normalise, even though it has underperformed slightly over the last three months. ^[35]

Global (ADR) perspective: HDB on NYSE

For international investors, HDFC Bank’s ADR (ticker HDB) trades on the NYSE.

MarketBeat data shows HDB recently closing around $35–36, with a market cap near $186 billion, a P/E of roughly 22x, and a 1‑year range of about $28.9–39.8. ^[36]
Four Wall Street analysts covering HDB give it a “Moderate Buy” consensus rating (no sells), split between buy/strong‑buy and hold recommendations. ^[37]

A recent MarketBeat piece also highlights robust institutional interest despite some trimming:

Fiera Capital reduced its stake by 5.2% in Q2 2025.
Other global investors such as GQG Partners, UBS Asset Management, Royal Bank of Canada and Nuveen have substantially increased exposure, leaving institutional ownership around 17–18% of outstanding ADRs. ^[38]

Intrinsic Value and Valuation Models

Beyond broker targets, independent valuation models also attempt to estimate HDFC Bank’s “fair value”.

Smart‑Investing’s fundamental dashboard (updated 1–2 December 2025) estimates: ^[39]

Median intrinsic value: Around ₹1,198 per share (based on a blend of EV/EBITDA, EV/Sales and Price/Sales models).
At current prices near ₹1,000, HDFC Bank is seen as trading at about a 16% discount to this modelled fair value.
The site classifies the bank’s fundamentals as strong, but categorises the stock as “fairly valued” to slightly undervalued, suggesting investors may prefer deeper discounts for aggressive buying.

Screener adds important context: ^[40]

Market cap: ~₹15.5 lakh crore.
High ROE: ~14% most recently, with 10‑year ROE averaging around 16%.
Compounded profit growth: ~21% over 5 and 10 years; about 8% on a trailing twelve‑month basis post‑merger.
Book value per share: ~₹337, implying a price‑to‑book close to 3x.
Pros: Strong long‑term profit growth, consistent dividend payouts, and robust sales growth history.
Cons: High valuation vs book, large contingent liabilities (over ₹27 lakh crore), and relatively low interest coverage—standard issues for a large universal bank but still risk factors.

Analytics‑oriented articles also stress that, despite elevated multiples, HDFC Bank’s valuation is not extreme relative to its history and quality. For instance, a November piece from Analytics Insight pegs the bank’s P/E at about 21x and P/B just under 3x, arguing that these are reasonable for a bank with strong asset quality, a 2.2% dividend yield, and industry‑leading franchise strength. ^[41]

Strategic Moves and Growth Drivers

Recent newsflow also highlights growth‑oriented initiatives:

Export financing partnership: HDFC Bank recently partnered with Canara Bank and HMA Agro Industries on a ₹71 crore export credit facility, supporting the FMCG player’s export operations. This is framed as evidence of the bank’s proactive stance in corporate lending and trade finance. ^[42]
Strong retail and corporate franchises: Q2 FY26 numbers show healthy growth across retail and wholesale segments, with the merged mortgage book gradually being integrated and cross‑sell opportunities emerging. ^[43]
Sector tailwinds: Nomura’s India banks report sees the sector at the cusp of a re‑rating, with margin headwinds easing and credit growth remaining robust—conditions under which large, well‑capitalised banks like HDFC tend to do well. ^[44]

Key Risks Investors Are Watching

Even the most bullish forecasts acknowledge several risks:

Margin compression and funding costs
NIMs have already fallen from earlier peaks, and while they appear to be stabilising, a renewed rise in funding costs or more aggressive deposit competition could pressure profitability. ^[45]
Regulatory and compliance risk
The RBI’s recent penalty, though small, underscores that even the largest private banks are under intense scrutiny for KYC, outsourcing and conduct issues. Further findings could lead to additional penalties or restrictions. ^[46]
Execution risk post‑merger
Integrating the former HDFC Ltd mortgage business at scale is complex. Failure to fully realise synergies or manage operational complexity could keep costs elevated longer than expected. ^[47]
Macro and FX headwinds
A persistently weak rupee and volatile global rates environment can influence foreign institutional flows into Indian financials. As a key index heavyweight and widely‑held name, HDFC Bank is especially exposed to shifts in global risk appetite. ^[48]
Valuation risk
Trading near 3x book and around 20x earnings, HDFC Bank leaves less room for disappointment than cheaper peers—particularly public‑sector banks that currently trade at lower multiples but are growing earnings quickly. ^[49]

What Today’s Move Means for Investors

Pulling all of this together, 2 December 2025 looks more like a pause and shake‑out than a fundamental turning point for HDFC Bank:

The stock is consolidating just below its 52‑week high, giving up some recent gains as traders book profits in a stretched market. ^[50]
Earnings remain solid, with double‑digit profit growth, strong capitalisation and stable asset quality, even as NIMs normalise. ^[51]
Regulator scrutiny is intense but, so far, limited to modest financial penalties and compliance admonitions. ^[52]
Most brokerages still see low‑to‑mid‑teens upside over the next 12 months, with more optimistic scenarios pointing to even larger gains if growth and margins surprise positively. ^[53]

For short‑term traders, the stock’s high index weight means it may continue to mirror broader swings in sentiment around Indian financials and the rupee, with technical levels near ₹1,000 and the 52‑week high around ₹1,020 acting as important reference points. ^[54]

For long‑term investors, the debate is less about whether HDFC Bank will grow, and more about how much growth is already priced in. Intrinsic value models and consensus targets suggest the stock is slightly undervalued to fairly valued, rather than a screaming bargain—but with a long history of compounding earnings and a dominant franchise, many see it as a core long‑term holding rather than a tactical trade. ^[55]