Defying weak market sentiment and unimpacted by the resignation of CEO Sashidhar Jagdishan, HDFC share price rose as much as 2.35% on NSE in Monday’s trading session.
HDFC Bank share price opened at ₹723.05 apiece on NSE today, as compared to previous close of ₹720.30 on Friday. The private lender stock touched an intraday high of ₹739.75 on 31 August.
HDFC Bank CEO resignation
According to a regulatory filing by HDFC Bank, Sashidhar Jagdishan has decided against seeking another term as the bank’s Managing Director and CEO, despite the board’s efforts to convince him to continue in the role.
Jagdishan’s current tenure is scheduled to end on October 26, 2026. The bank’s board acknowledged his contributions and leadership, crediting him with helping drive HDFC Bank’s growth and stability. It also highlighted his role in the successful completion of the merger, one of the largest corporate mergers in India.
Jagdishan joined HDFC Bank in 1996 as a manager in the finance division and rose through various positions over nearly three decades before taking charge as the bank’s CEO.
Following his decision, the board has initiated the process of identifying his successor. The development has shortened the timeframe available for a leadership transition compared with the bank’s usual process. Typically, bank boards approve the reappointment of a CEO and approach the Reserve Bank of India for approval around six months before the end of the incumbent’s tenure. In Jagdishan’s case, his current term was approved by the board in March 2023, around seven months before his previous tenure was set to expire.
Meanwhile, a Reuters report said V. Srinivasa Rangan and Bharucha were among the leading names being considered for the top position. Bharucha, who has around 35 years of banking experience, has been serving as HDFC Bank’s Deputy Managing Director since April 19, 2023. The bank could also consider an external candidate, as RBI regulations require lenders to submit multiple names for consideration for the CEO position.
Should you buy or sell HDFC Bank share price?
Brokerage firm Motilal Oswal has revised its HDFC Bank target price to ₹925, while maintaining ‘buy’ rating, saying that the changes in its leadership team will help to address the skepticism that has engulfed the bank over the recent period. A new leadership team, alongside an improvement in growth and earnings trajectory, should improve investor sentiment.
“We estimate HDFCB to deliver an improved earnings performance from FY28 onward, while RoA should sustain at ~1.8%. We revise our TP to INR925 (1.8x FY28E ABV + INR128 for subs) and maintain our BUY rating,” it added.
Meanwhile, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, recommended investors to consider HDFC Bank share price from these levels.
“The stock offers an attractive opportunity for long-term investors, particularly given the bank’s strong fundamentals and growth potential. Investors can look at accumulating the stock gradually rather than taking a large position at once,” Ojha said.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.