India's HDFC Bank falls; CEO to not seek reappointment

HDFC Bank

31/08/2026 10:49

Updates
** HDFC Bank HDBK.NS shares down 1.5% to 709.9 rupees
** Stock rose as much as 2.7% earlier in the session
** India's largest private lender said on Saturday its CEO Sashidhar Jagdishan will not seek reappointment when his term ends at the end of October
** Bank likely to name Deputy MD Kaizad Bharucha as one  of two candidates for next CEO, Reuters exclusively reported
** Jefferies ("Buy"; PT revised to 880 rupees from 1,050 rupees) expects the transition to weigh on near-term performance, warning it "is likely to impact revenue momentum on deposit mobilisation and fees." 
** Bernstein ("Outperform"; PT: 1,150 rupees) says the announcement prolongs uncertainty around CEO succession
** However, brokerage views this positively as it avoids a potential RBI-imposed short term (under 2 years), which would have worsened governance concerns
** Adds, this gives the incoming CEO a clean slate to reset expectations after the bank underperformed investor targets
** JP Morgan ("Overweight"; PT: 990 rupees) agrees, noting swift successor appointment could ease investor concerns, with much risk already priced into valuation
     

 (Reporting by Mridula Kumar in Bengaluru)
 ((Mridula.Kumar@thomsonreuters.com;))