HDFC Bank Share Price Today: Private lender HDFC Bank shares slipped in trade on Wednesday, with the scrip falling as much as 1.67% to hit an intraday low of Rs 700.15 per share.
At 9:44 am, HDFC Bank shares were trading 1.05% lower at Rs 704.60. In comparison, the BSE Sensex was trading 0.78% lower at 76,341.18.
Trading activity in the stock was also elevated. Around 4.92 lakh shares worth Rs 34.51 crore changed hands on the BSE, while 117.98 lakh shares worth Rs 828.54 crore were traded on the NSE at the time of writing.
HDFC Bank CEO Succession In Focus
HDFC Bank Ltd. is considering Kaizad Bharucha and Jimmy Tata as two internal candidates for the role of the next chief executive officer, according to two sources familiar with the matter who spoke to NDTV Profit on Sunday.
The sources said the bank's Nomination and Remuneration Committee (NRC) and board could also evaluate external candidates as part of the succession process.
ALSO READ: HDFC Bank Considers Kaizad Bharucha, Jimmy Tata As Internal Candidates For CEO: Sources
“HDFC Bank may have communicated the two internal candidates' names for CEO to the Reserve Bank of India,” the sources said on condition of anonymity.
HDFC Bank did not comment on NDTV Profit's query.
Bharucha has been serving on the HDFC Bank board for 12 years and may require special dispensation from the Reserve Bank of India for the top position. RBI rules cap an individual's tenure as a bank director at 15 years.
What Brokerages Say
Citi said Kaizad Bharucha appears to be the most natural internal succession candidate and carries a high probability among the internal options. However, the brokerage also noted that the NRC and board could evaluate external candidates.
Kotak Securities said the merger with HDFC Ltd has strengthened the franchise, although key operating metrics remain below those of best-in-class peers. The brokerage expects uncertainty around the leadership transition to keep valuation multiples below historical levels in the near term.
JPMorgan retained its Overweight rating on HDFC Bank with a target price of Rs 990. The brokerage believes valuations already factor in a significant amount of downside, leaving limited scope for further de-rating. It also said a revival in net interest income growth remains critical to restoring investor confidence in the stock.
Morgan Stanley said the CEO reappointment issue has remained an overhang on HDFC Bank. According to the brokerage, a timely conclusion to the process will be important for investors to refocus on the bank's fundamentals.
Nuvama said a credible internal transition led by Bharucha could accelerate the normalisation of the business. A strong external appointment, meanwhile, could take longer but may offer a broader governance reset and create the potential for a long-term re-rating, similar to what was seen at IndusInd Bank.
ALSO READ: HDFC Bank CEO Succession: Brokerages Say Smooth Transition Is Just The First Test
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