Anup Bagchi's three decades of experience across retail and wholesale banking, digital financial services, capital markets, wealth management and insurance will enable him to lead India's largest private bank with leadership across BFSI segment, says Motilal Oswal. His digital and data-analytics experience will further aid in improving the product propositions and overall productivity metrics.
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Motilal Oswal Report
The appointment of Anup Bagchi removes a key overhang surrounding HDFC Bank's leadership succession and brings an external perspective at a time when the bank is seeking to rebuild investor confidence. A new leadership team, alongside an improvement in growth and earnings trajectory, should improve investor sentiment.
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HDFC Bank Ltd. is undergoing management transition after a series of adverse developments, challenges in operating performance after its merger with HDFC Ltd., and significant erosion of shareholder wealth over recent years.
The changes in leadership team will help address the skepticism that has engulfed the bank over the recent period.
Leadership stability under Anup Bagchi, a proven BFSI professional, alongside an improvement in growth and earnings trajectory, should improve investor sentiment and help the stock re-rate over the medium term.
Motilal Oswal estimates HDFC Bank to deliver an improved earnings performance from FY28 onward as we estimate PAT growth to recover to 13% YoY by FY28E vs average 9% over FY24-27E.
Motilal Oswal retains Buy with a target price of Rs 925, 1.8 times FY28E adjusted book value and Rs 128 for subs.
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