HDFC Bank is trading at a significant discount to its historical valuation, with mutual funds increasing their stake despite recent price drops and profitability pressures.
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HDFC Bank News | HDFC Bank Share Latest News | HDFC Bank Share Latest News
Sep 2, 2026
HDFC Bank has fallen nearly 25% in the past year, impacting retail investors and mutual funds. Despite this, mutual funds have increased their ownership from 26.66% in December 2025 to 30.62% in June 2026. The bank's valuation is now trading at roughly 1.8 times book value, a significant discount from its historical average of 2.8-2.9 times. While concerns like merger hangover, slower profit growth, and leadership uncertainty exist, the underlying business remains strong with healthy loan growth and low NPAs. The increased buying by domestic institutions, particularly mutual funds, suggests a potential opportunity if profitability recovers.
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