HDFC Bank shares climbed nearly 3% to Rs 727 on the NSE on Tuesday after the private sector lender moved ahead with the succession process for CEO Sashidhar Jagdishan, whose retirement is due later this year.
The bank has submitted two names to the Reserve Bank of India (RBI) for consideration. The candidates have not been officially disclosed, although people familiar with the matter have identified Deputy Managing Director Kaizad Bharucha and an external candidate as potential contenders.
Names reportedly being considered for the external option include ICICI Prudential Life CEO Anup Bagchi and Citi India CEO K Balasubramanian.
HDFC Bank CEO Succession: What Brokerages Say
The leadership transition has become an important factor for HDFC Bank’s stock, particularly after governance concerns earlier this year weighed heavily on investor sentiment.
Nomura on HDFC Bank Share Price
Nomura retained its Buy rating on HDFC Bank and set a target price of Rs 950 per share. The brokerage believes Bharucha’s appointment could provide continuity because of his familiarity with the bank. However, it sees greater potential for a stock re-rating if the lender chooses a strong external candidate.
According to Nomura, a new external CEO could reassess the bank’s strategy and provide a clearer direction on areas such as growth, deposits, margins and returns.
Bernstein on HDFC Bank Stock
Bernstein maintained its Outperform rating with a target price of Rs 1,150 per share. The brokerage also noted the proposed elevation of Jimmy Tata as a whole-time director and said the succession process remains on schedule ahead of Jagdishan’s retirement.
Macquarie on HDFC Bank Share Price
Macquarie also retained its Outperform rating and a Rs 1,150 target price. The brokerage considers the appointment of an external CEO to be a potential trigger for a re-rating of HDFC Bank shares.
HDFC Bank Share Performance
HDFC Bank has faced significant selling pressure in 2026, with the stock down around 29% so far this year. The shares recently touched a fresh 52-week low of Rs 681.90, significantly below their record high of Rs 1,020.50 reached in October last year.
The stock has also underperformed other Nifty Bank constituents and has delivered weak returns over longer periods.
Despite the decline, analysts believe the stock’s oversold technical indicators could support a short-term recovery. However, the broader trend remains weak, with technical analysts yet to see clear signs of a sustained reversal. The CEO succession process could therefore become an important catalyst for HDFC Bank as investors assess whether the next leadership team can address concerns and improve the bank’s growth and returns outlook.
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