HDFC Bank External Counsel Report Concludes – Governance Concerns Likely to Moderate

Research evidence excerpt

HDFC Bank External Counsel Report Concludes – Governance Concerns Likely to Moderate

J P M O R G A N Asia Pacific Equity Research

28 June 2026

HDFC Bank Overweight

HDBK.NS, HDFCB IN

External Counsel Report Concludes – Governance Price (25 Jun 26):Rs796.30

Concerns Likely to Moderate Price Target (Sep-27):Rs990.00

Event : HDFC Bank (HDFCB) has announced the conclusion of the external legal India Financials

ACreview commissioned in connection with the statements referenced in the former Anuj Singla

Chairman’s (Mr Atanu Chakraborty) resignation letter. HDFCB stated that the (91-22) 6157-3590

external counsel conducted an extensive review over a three-month period and anuj.singla@jpmchase.com

submitted a detailed report to the Board, concluding that the statements and their J.P.Tower,MorganSantacruz(E),India PrivateMumbaiLimited,- 400098,J.P. MorganSEBI

implications were not substantiated by the records reviewed or witness interviews. Registration: INH000001873, (91-22) 6157-3000.

Harsh Wardhan Modi

• Our view on potential impact: We believe that the conclusion of the (65) 6882-2450

independent legal review that the contemporaneous evidence reviewed was harsh.w.modi@jpmorgan.com

inconsistent with the former Chairman's statements should help narrow some J.P. Morgan Securities Singapore Private Limited/

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

of the governance risk premium that has been embedded in the stock since the Morgan Broking (Hong Kong) Limited

resignation. HDFCB stock has de-rated by 8% on P/BV with the discount to Shivansh Puri, CFA

ICICI Bank (key peer) expanding to 23% since the resignation of the former (91-22) 6157-5077

part-time chairman. We also see HDFCB being a key beneficiary of the shivansh.puri@jpmchase.com