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HDFC Bank Stock Plummets 25% Amidst Rising Leveraged Bets
17 Aug
Summary
- HDFC Bank stock has declined 25% this year, its worst performance in a decade.
- Leveraged positions on the stock surged to ₹3,212 crore by mid-August.
- Net Interest Margins fell to a record low in the June quarter.
HDFC Bank shares are undergoing significant underperformance, marking one of their worst calendar years with a 25% decline so far. This stock, which had delivered positive annual returns for at least the past 10 consecutive years, is now trading at multi-year lows.
Leveraged positions on HDFC Bank have seen a substantial increase. As of August 13, 2026, these positions on the Margin Trading Facility (MTF) crossed ₹3,000 crore, reaching ₹3,212 crore. This represents an 80% growth from mid-June to mid-August 2026.
The bank's June quarter results revealed a record low in Net Interest Margins (NIMs), impacting its share price recovery. Despite this, HDFC Bank maintained strong asset quality and healthy loan and deposit growth.
This underperformance has allowed rival ICICI Bank to close the market capitalization gap significantly, reaching levels not seen in a decade. HDFC Bank shares closed near their recent lows last Friday, reflecting ongoing investor concerns.
