HDFC Bank shares traded higher in early deals on June 29 after two global brokerages reiterated their bullish calls on the private sector lender. Analysts said an independent legal review into allegations raised by former chairman Atanu Chakraborty should help reduce governance concerns that have weighed on the stock in recent months.

The stock rose 0.5 percent to Rs 800.2 in early trade, extending its gains after advancing 0.35 percent in the previous session. Despite the recent recovery, HDFC Bank shares remain down about 20 percent over the past year, underperforming the Nifty 50, which has declined 5.7 percent over the same period. The bank commands a market capitalisation of around Rs 12.3 lakh crore.

Jefferies maintained its 'Buy' rating on the stock with a target price of Rs 1,050 per share, implying an upside of about 32 percent from Thursday's closing price. The brokerage said independent law firms reviewing comments made by former chairman Atanu Chakraborty found no evidence supporting the allegations contained in his March 2026 resignation letter.

According to Jefferies, the findings ease investor concerns around governance, potentially clearing the path for the appointment of a new non-executive chairman and the renewal of Managing Director and CEO Sashidhar Jagdishan's term. The brokerage also said HDFC Bank's valuation remains attractive at around 13 times FY27 estimated earnings and 1.7 times adjusted price-to-book value.

JPMorgan also reiterated its 'Overweight' rating on the stock with a target price of Rs 990 per share. The brokerage said the legal review should help reduce the governance risk premium that has weighed on HDFC Bank's valuation since Chakraborty's resignation.

JPMorgan noted that the stock has de-rated by about 8 percent on a price-to-book basis following the former chairman's exit despite no material deterioration in the bank's operating performance. It also expects the Reserve Bank of India's recent measures to encourage Foreign Currency Non-Resident (FCNR) deposits to support deposit mobilisation and business growth. Combined with the stock's multi-year low valuation, the brokerage believes the risk-reward remains favourable.

The positive brokerage commentary follows HDFC Bank's disclosure that an independent legal review found no evidence in Board or Board Committee minutes, related communications or witness interviews to substantiate the concerns raised by Chakraborty in his resignation letter.

However, Chakraborty has disputed the findings. He said the terms of reference and legal framework governing the review were not shared with him, and maintained that the bank's Board had failed to adequately introspect on the issues raised in his resignation.

Separately, CNBC-TV18 reported, citing sources, that HDFC Bank's board is expected to finalise the appointment of a new non-executive chairman within the next seven to ten days. According to the report, the Nomination and Remuneration Committee will submit three shortlisted names to the board in order of preference, following which a recommendation on the CEO's appointment will be sent to the RBI after the chairman's appointment. HDFC Bank has not commented on the report.