Shares of HDFC Bank Ltd edged up 0.37 per cent to settle at Rs 796.05 on Thursday. At this closing level, the stock remains down 19.65 per cent on a year-to-date (YTD) basis.

Last week, the Reserve Bank of India (RBI) approved the extension of Keki Mistry's tenure as interim Part-time Chairman for a further period of three months, until September 18, 2026, or until the appointment of a regular Part-time Chairman, whichever is earlier.

Mistry was appointed interim Part-time Chairman for three months following the resignation of then Part-time Chairman Atanu Chakraborty, who stepped down citing a lack of congruence with personal values and ethics.

HDFC Bank had stated that no specific material matters, operational issues or governance lapses were brought to its attention when it sought clarification from Chakraborty.

Despite the stock's sharp decline this year, some market experts believe its long-term fundamentals remain intact.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "From a longer-term perspective, HDFC Bank's valuations look attractive. Investors can accumulate the stock at current levels with a medium- to long-term view."

Ravi Singh, Chief Research Officer at Master Capital Services, "HDFC Bank continues to strengthen its position as India's leading private sector lender, supported by steady earnings growth, healthy loan expansion, and strong asset quality. The bank has successfully navigated the post-merger integration phase and is now witnessing improving business momentum, with management focusing on accelerating deposit growth and enhancing profitability. Its strong balance sheet, consistent execution, and dominant retail franchise provide a solid foundation for long-term growth."

He added, "From a technical standpoint, the stock has formed a strong base after an extended consolidation and is now trading above its 50-day EMA, signalling renewed buying interest. The price structure suggests accumulation by institutions, and a sustained move above key resistance levels could trigger a fresh bullish breakout, making HDFC Bank an attractive blend of stability and upside potential."

Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One, said, "The bearish gap around Rs 800-818 is likely to restrict the intermediate momentum, and caution is prudent. While on the lower end, Rs 760-745 is likely to cushion any shortcomings in the near period."

Meanwhile, Nomura recently said the foreign currency non-resident bank -- FCNR(B) -- deposit swap scheme could be a potential blessing for HDFC Bank, adding that the risk-reward remains favourable as the stock is trading at decade-low valuation multiples. The foreign brokerage has assigned a 'Buy' rating with a target price of Rs 950.

"The RBI's FCNR (B) scheme could address all these in a single window, making HDFCB a potential standout beneficiary in our coverage. The bank could garner 15 per cent of overall FCNR flows, in our view – equivalent to 3 per cent of its current deposit base," Nomura said.