HDFC Bank shares rise 2% on CEO appointment, Q2 business update
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Shares of HDFC Bank gained up to 2% in early trade on Monday, in line with the broader market, amid a slew of positive developments, including the appointment of a new MD & CEO and a strong September quarter business update.
Extending their gains for the second consecutive session, HDFC Bank shares rose 2% to hit a high of ₹734 on the BSE. On Thursday, the banking heavyweight ended 1.76% higher after losing nearly 2% in the previous session.
At the time of reporting, HDFC Bank shares were trading 0.85% higher at ₹725.55, with a market capitalisation of around ₹11.17 lakh crore.
The Reserve Bank of India has approved the appointment of Anup Bagchi as the new MD & CEO of HDFC Bank for a three-year term starting October 27, 2026. He will succeed Sashidhar Jagdishan, whose term ends on October 26.
Bagchi brings more than three decades of experience across banking, capital markets, wealth management and insurance. He has been associated with the ICICI Group since 1992 and has held leadership positions at ICICI Bank, ICICI Prudential Life and ICICI Securities.
Motilal Oswal sees leadership change easing overhang
Motilal Oswal, in a report, said Bagchi's appointment 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," the brokerage said.
HDFC Bank is undergoing a management transition after a series of adverse developments and challenges in operating performance following its merger with HDFC Ltd, along with significant erosion in shareholder wealth over recent years, it said.
"Leadership stability under Mr. 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 said.
The brokerage expects HDFC Bank's earnings performance to improve from FY28, with PAT growth estimated to recover to 13% year-on-year by FY28, compared with an average of 9% during FY24-FY27. It retained its 'Buy' rating with a target price of ₹925.
Q2 advances rise 16%, deposits jump 19% to ₹33.28 lakh crore
HDFC Bank's average advances under management stood at ₹31,87,200 crore in the September 2026 quarter, up around 14% from ₹27,94,600 crore in the year-ago period, the private lender said in an exchange filing.
Period-end advances under management rose 15.3% year-on-year to approximately ₹33,07,500 crore as of September 30, 2026, while period-end gross advances increased 16.3% to ₹32,19,500 crore, the release noted.
The bank's average deposits grew 16.8% year-on-year to ₹31,66,500 crore during the September quarter, compared with ₹27,10,500 crore a year earlier.
Average CASA deposits rose 10.7% to ₹9,71,200 crore, while average time deposits increased 19.7% to ₹21,95,200 crore.
At the end of September, HDFC Bank's deposits stood at approximately ₹33,27,500 crore, up 18.8% year-on-year from ₹28,01,800 crore a year earlier.
Period-end CASA deposits rose 10.8% to ₹10,52,000 crore, while time deposits increased 22.8% to approximately ₹22,75,500 crore.