HDFC Bank: Leadership Clarity Boosts Stock

HDFC Bank shares are expected to be a key focus following the appointment of Anup Bagchi as its new Managing Director and Chief Executive Officer. Bagchi, a seasoned veteran from the ICICI Group, will officially assume his role on October 27, following the conclusion of Sashidhar Jagdishan's term.

This leadership transition marks the end of an extended period of uncertainty for the bank. Bagchi has already joined the HDFC Bank board as an Additional Director, effective October 2, commencing his three-year term.

Brokerage firms Jefferies, Morgan Stanley, and Citi have reaffirmed their positive outlook on HDFC Bank. Jefferies maintained a 'Buy' rating with a target of Rs 880, citing clarity on succession and potential for stock re-rating due to improving retail credit growth and cross-sell opportunities. Morgan Stanley upheld an 'Overweight' rating with a target of Rs 1,025, noting strong underlying deposit growth of around 15% year-on-year.

Citi also issued a 'Buy' rating and a target of Rs 970, viewing Bagchi's appointment as strategically positive. The bank reported robust business updates for the September 2026 quarter, with average advances growing approximately 14% year-on-year and average deposits increasing around 16.8% year-on-year.