Axis Bank was the only major banking stock trading in the green on Tuesday morning, rising 0.8% to Rs 1,367.60, even as peers HDFC Bank (-0.56%), Yes Bank (-0.52%) and Bandhan Bank (-0.07%) declined. The outperformance came despite the announcement that Axis Bank CFO Puneet Sharma will move to HDFC Bank as its new CFO from December.
Brokerages have largely dismissed concerns around the management change, viewing it as an individual career move rather than a reflection of any weakness at Axis Bank.
Kotak Institutional Equities said HDFC Bank has strengthened its leadership with the appointment of former Finance Secretary Rajiv Kumar as Chairman-designate and Puneet Sharma as CFO, while adding that Sharma's resignation from Axis Bank is not a negative for the lender.
Jefferies also termed the appointments a positive step in HDFC Bank's succession planning, reiterating HDFC Bank as one of its top banking picks.
HDFC Bank slipped 0.56% to Rs 794.40 even as brokerages maintained a constructive view following the leadership appointments. Yes Bank fell 0.52% to Rs 24.96 despite announcing it has received an income tax refund of Rs 879 crore for AY2018-19, including interest income and tax benefits above the materiality threshold. The refund follows the resolution of tax proceedings dating back to the bank's 2020 assessment.
Bandhan Bank was marginally lower, down 0.07% to Rs 202.19, after its CFO Rajeev Mantri also resigned. Kotak said these leadership changes across banks are driven by individual career considerations and do not alter their underlying business fundamentals or the broader investment case for the banking sector.
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