HDFC Bank shares rally 6% in 5 sessions, hit ₹787.50 intraday as Nomura sees RBI FCNR(B) boost
Key Points
HDFC Bank shares surged nearly 6% in five trading sessions, hitting ₹787.50 intraday.
Nomura sees HDFC Bank as a major beneficiary of the RBI’s FCNR(B) deposit initiative.
Analysts expect stronger deposit growth and improved funding flexibility for the bank.
Positive brokerage outlooks and attractive valuations are driving renewed investor interest.
HDFC Bank shares have gained nearly 6% in the last five trading sessions, reaching an intraday high of ₹787.50 on June 16, 2026. The rally comes after brokerage firm Nomura highlighted the bank as a key beneficiary of the Reserve Bank of India’s latest FCNR(B) deposit initiative. Investors are closely watching how this policy could strengthen the bank’s deposit base and support future growth. The recent surge has also renewed optimism around one of India’s largest private-sector lenders.
HDFC Bank Stock Extends Winning Streak, Gains 6% in Five Sessions
Key Price Action and Trading Highlights
HDFC Bank shares continued their strong recovery in mid-June 2026. The stock touched an intraday high of ₹787.50 on June 16 after gaining nearly 6% in five trading sessions. The rally came as investors reacted positively to the Reserve Bank of India’s latest foreign currency deposit measures and improving sentiment across banking stocks.
The stock also outperformed many large-cap peers during the period. On June 16, HDFC Bank closed around ₹784.70, extending gains from the previous week. Banking stocks broadly moved higher, helping the Nifty Bank index reach a one-month high.
How HDFC Bank Is Performing Versus Peers?
The recent rally stands out because HDFC Bank had been under pressure for much of 2026. While several banking stocks recovered on improving liquidity expectations, HDFC Bank attracted special attention due to its large deposit franchise and potential benefits from RBI policy changes.
Compared with many private-sector banks, the stock still trades below its 52-week high. However, analysts believe the valuation has become more attractive after the sharp correction seen earlier this year.
Why Nomura Believes RBI’s FCNR(B) Scheme Could Be a Game-Changer?
The RBI FCNR(B) Deposit Initiative
The RBI recently introduced measures to encourage banks to raise Foreign Currency Non-Resident (Bank), or FCNR(B), deposits. These deposits allow non-resident Indians to hold foreign currency accounts with Indian banks.
The move aims to:
- Boost foreign currency inflows.
- Improve banking system liquidity.
- Strengthen India’s external funding position.
- Support credit growth without increasing domestic funding pressure.
Market participants view the policy as a targeted step to attract overseas deposits at a time when banks are competing aggressively for funding.
Why HDFC Bank Could Be the Biggest Beneficiary?
According to Nomura, HDFC Bank could capture around 15% of the expected FCNR(B) inflows. That could add roughly 3% to the bank’s deposit base and improve funding flexibility.
The brokerage believes HDFC Bank’s large NRI customer network and strong brand position make it one of the best-placed lenders to benefit from the scheme. This expectation was a key driver behind the recent share-price rally reported across financial media outlets.
What Does the FCNR(B) Opportunity Mean for HDFC Bank’s Growth Outlook?
Impact on Deposit Growth and Loan Expansion
Deposit growth remains one of the biggest factors investors watch in banking stocks. Additional FCNR(B) inflows could help HDFC Bank accelerate deposit growth while supporting future lending activity.
A stronger deposit base gives the bank more room to expand retail, corporate, and SME lending. It may also reduce reliance on expensive wholesale funding channels.
For investors, this creates a positive outlook because sustainable deposit growth often supports earnings growth over the long term.
Funding Mix and Margin Benefits
Lower-cost and stable deposits can improve a bank’s funding profile. Analysts believe FCNR(B) deposits may help HDFC Bank manage funding costs more efficiently.
A healthier funding mix could support net interest margins and profitability. While benefits may take time to fully appear in earnings, investors are already pricing in the potential impact.
Analysts Remain Positive Despite Earlier Governance Concerns
RBI’s Position on HDFC Bank Governance
Earlier in 2026, governance-related concerns weighed on investor sentiment. However, recent comments from regulators and management updates have helped reduce uncertainty.
As a result, attention is shifting back to business fundamentals, including deposit growth, loan expansion, and earnings potential.
Updated Brokerage Targets
Nomura continues to maintain a positive outlook on HDFC Bank and reportedly sees meaningful upside from current levels. Other brokerages, including JP Morgan and Jefferies, have also turned more constructive after the stock’s correction earlier this year.
What Investors Should Watch Next?
Investors should monitor several key developments:
- FCNR(B) deposit mobilization trends.
- Quarterly earnings performance.
- Deposit growth versus loan growth.
- RBI policy announcements.
- Management commentary on funding and margins.
Stock Details, Technical Analysis, and What Meyka Says
According to Meyka, HDFC Bank currently carries a B+ rating with a 12-month target near ₹989–₹1,006 depending on the model period analyzed. Meyka’s AI stock analysis tool highlights improving long-term risk-reward despite recent volatility.
Technical indicators from Meyka suggest:
- Support zone: ₹738–₹744.
- Resistance levels: ₹760 and above.
- Earlier RSI readings indicated oversold conditions.
- Volume trends show continued institutional participation.
Other analysts remain broadly constructive, citing attractive valuations and strong banking fundamentals.
Conclusion
HDFC Bank’s 6% rally in five sessions reflects renewed confidence in the bank’s growth story. The RBI’s FCNR(B) initiative has created a fresh catalyst, while brokerages such as Nomura see meaningful benefits for deposits and funding costs.
Although challenges remain, improving sentiment, supportive analyst targets, and stronger liquidity expectations have put the stock back on investors’ radar. The next few quarters will determine whether this recovery develops into a sustained long-term uptrend.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
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