Motial Oswal: HDFC Bank’s Key Overhang Addressed After New CEO; Focus Back On Business Performance

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.The Reserve Bank Of India has approved the appointment of Mr. Sashidhar Jagdishan as Managing Director and Chief Executive Officer of the bank for a period of three years, effective from October 27, 2020, after Mr. Aditya Puri’s term ends on October 26, 2020.HDFC Bank Ltd.’s stock price has been under pressure due to concerns around the succession and the recent attrition in the top management. The RBI’s approval thus addresses a major overhang on the stock’s performance as Mr. Jagdishan has been with the bank for the past 24 years.He has held various positions in the bank in key functions such as finance, human resource, legal, and administration; thus, succession by an internal candidate augurs well to boost investor confidence and continue the impeccable performance the bank has witnessed under the leadership of Mr. Aditya Puri.Although some concerns remain around top-level attrition, we believe this appointment addresses a key overhang. With the system challenged by the impact of the Covid-19 outbreak, we believe large banks are relatively better placed to tide over this crisis..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motial Oswal: HDFC Bank’s Key Overhang Addressed After New CEO; Focus Back On Business Performance

Motial Oswal: HDFC Bank’s Key Overhang Addressed After New CEO; Focus Back On Business Performance

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