HDFC Bank Limited touched a day high of Rs 743.95 on the NSE on 9 June, but stayed largely flat even as the broader banking sector surged more than 2% on the back of a new RBI facility for overseas borrowings.

Most banks had a strong session. State Bank of India rose 2%, ICICI Bank gained 2%, and the Nifty Bank index was up 2% by early afternoon. 

HDFC Bank, by contrast, barely moved, underperforming its peers across the sector. The reason comes down to a governance review that investors are still waiting to see resolved.

Back in March, the bank’s chairman Atanu Chakraborty resigned abruptly, citing clashing values and ethics with the institution and flagging governance concerns. 

The bank then commissioned an independent legal review, led by law firms Trilegal and Wadia Ghandy & Co along with an international firm. 

That report is expected to be submitted to the board this week, nearly three months after the review began. The stakes are meaningful. The findings could influence the reappointment of CEO Sashidhar Jagdishan, whose current term ends in October.

Separately, HDFC Bank raised its Marginal Cost of funds-based Lending Rate, or MCLR, by up to 10 basis points across loan tenors from 8 June 2026. 

The one-year MCLR, which prices most home, auto and personal loans, went up 5 basis points to 8.4%. The two-year tenor saw the biggest increase, rising 10 basis points to 8.55%.

The rate hike came shortly after the RBI held interest rates steady for the second consecutive meeting, as it monitors the impact of the ongoing West Asia conflict on energy prices and inflation.

At 14:44 pm on 9 June, shares were trading up 0.08% at Rs 739.25, well off the day high of Rs 743.95. The 52-week high stands at Rs 1,020.50 and the 52-week low at Rs 726.65.

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