India's largest private sector lender HDFC Bank Ltd.'s stock opened nearly 2% higher on Tuesday after the Bank's board narrowed down two prospects for the CEO post, indicating a fast-tracked appointment process.
The stock climbed as high as 3.18% within minutes of the opening bell to Rs 730.75. As of 9:20, it pared gains to trade 2.6% higher at Rs 726.30.
CEO Overhang Appears To Be Easing
HDFC Bank has sent the names of Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance, and Kaizad Bharucha, Deputy MD of HDFC Bank, to the Reserve Bank of India for approval for the lender's top job, people familiar with the matter said.
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The RBI is expected to take a call on the appointment in the next 7–10 days, with Bharucha representing the internal candidate and Bagchi the external choice.
Bharucha has been with the HDFC group since 1995 and has spent close to three decades across businesses including corporate banking, retail assets, mortgages, emerging corporates and business banking.
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He became HDFC Bank's Deputy Managing Director in 2023 and has been closely involved in the integration of HDFC Ltd with the bank. His long association with the institution gives him deep familiarity with its businesses, people and operating culture.
Bagchi, on the other hand, brings a three-decade career across banking and financial services. An ICICI Group veteran, he has worked across retail and corporate banking, MSME, rural banking, treasury and markets, and has also led ICICI Securities. He took charge as MD & CEO of ICICI Prudential Life Insurance in 2023, giving him experience of running a large financial-services franchise outside traditional banking.
HDFC Share Price History
The year has been difficult for HDFC Bank, one management shock after another. However things seem to be looking up. The stock has fallen 27% year-to-date, and over 25% in the last 12 months.
HDFC Bank CEO Race: Brokerages On Internal Continuity vs External Reset
Nomura retained its Buy rating with a target price of Rs 950, saying the leadership transition is the more important near-term catalyst. It sees an internal appointment as initially positive because it would remove succession uncertainty and provide continuity.
Jefferies, which also maintained Buy with a Rs 880 target, said the bank is moving quickly on the appointment after proposing two candidates. It sees the addition of a fourth executive director role as strengthening oversight and succession planning.
For More Details Read: HDFC Bank CEO Race: Brokerages Split On Internal Continuity vs External Reset — Check Target Prices
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