HDFC Bank shares rise 2% from 52-week low as RBI clears LIC stake increase

On Thursday, HDFC Bank shares experienced a nearly 2% increase from their 52-week low, following the Reserve Bank of India's approval for Life Insurance Corp (LIC) to raise its stake in the private lender to a maximum of 9.99%. The stock had previously reached a 52-week low of ₹715.10.

HDFC Bank disclosed the RBI approval late on Wednesday, with LIC holding a 4.11% stake in the bank as of August 14. The lender is also exploring the dollar bond market for the second time in two months, aiming to raise at least $500 million through three-year and five-year bonds.

The stock price surged to ₹728.30 by 10:16 am on Thursday, up from a fresh 52-week low of ₹715.10 recorded on Wednesday. Trading volume reached 49.50 lakh shares, with a traded value of ₹359.72 crore. Over the past week, the stock climbed 0.27%, but remained down 6.51% over one month, 26.66% YTD, and 26.87% over one year.

In August 2025, HDFC Bank executed its first-ever 1:1 bonus share issue, which adjusted the stock price accordingly, leaving the total portfolio value unchanged. The stock was valued at ₹972.30 on August 26, 2025, the ex-date for the bonus issue, before falling over 26% from that level to the 52-week low of ₹715.10 on August 19, 2026.

Kotak Institutional Equities noted that the re-rating of HDFC Bank is playing a crucial role in valuation discovery for mid-tier private banks and regional banks, but finds the valuations expensive due to their high concentration of loan mix in gold loans. The brokerage prefers frontline private banks like HDFC Bank and ICICI Bank, along with SBI among public banks, as they offer better RoE profiles.