Hyderabad, Oct. 5 (Maxim News): HDFC Bank shares reversed their early gains on Monday as investors weighed the appointment of Anup Bagchi as the bank’s next managing director and chief executive officer against the lender’s operational challenges.
The stock opened 1.67% higher at ₹733.25 on the BSE but later slipped into negative territory.
At 11:57 am, shares traded at ₹705.05, down 2.24%, according to the figures provided in the market update. (Moneycontrol)
The Reserve Bank of India has approved Bagchi’s appointment for a three-year term beginning October 27.
He will succeed Sashidhar Jagdishan, whose term ends on October 26.
Bagchi brings 34 years of experience with the ICICI Group across banking, insurance, capital markets, treasury and wealth management.
His appointment ends months of uncertainty over leadership succession at the private sector lender.
HDFC Bank Q2 Growth and Brokerage Targets
HDFC Bank’s September-quarter business update showed strong growth in loans and deposits. Gross advances rose 16.3% year-on-year and 5.2% quarter-on-quarter to ₹32.19 lakh crore.
Assets under management increased 15.3% year-on-year to ₹33.07 lakh crore. Deposits rose 18.8% to ₹33.27 lakh crore, while current account and savings account deposits grew 10.8% to ₹10.52 lakh crore. (Moneycontrol)
Despite the strong business update, investors remain focused on whether the new leadership can improve loan growth, net interest margins and the bank’s performance following its merger with HDFC Ltd.
Brokerages have retained positive ratings on the stock. Motilal Oswal maintained its Buy rating with a target price of ₹925. It expects loan growth and margins to improve over the coming years, with earnings growth strengthening by FY28.
PL India also retained its Buy rating and set a target price of ₹950. However, it highlighted the loan-to-deposit ratio, net interest margins and the gap between management guidance and execution as key challenges for the incoming leadership.
Bagchi is expected to focus on rebuilding investor confidence, optimising the balance sheet and strengthening technology, digital services and customer experience.
The stock’s reaction highlights the cautious mood among investors. Leadership clarity and healthy business growth have provided support, but the market will look for sustained improvement in financial performance before reassessing the bank’s valuation. (Maxim News)
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