Shares of India’s largest private sector lender HDFC Bank rose 2.5% on Monday after CEO Sashidhar Jagdishan announced that he will leave the bank after his current term ends in October.
The surprise leadership change comes at a challenging time for HDFC Bank, whose shares have fallen sharply this year. LSEG data shows the stock is down 27% since the start of the year, compared with an 8% decline in India’s benchmark Nifty 50 index.
Analysts say the appointment of a credible successor could become a major catalyst for the bank’s share price. Nomura said the next CEO will need to accelerate growth, improve deposit mobilization and returns, and restore confidence in governance and senior-management stability.
Kaizad Bharucha, HDFC Bank’s deputy managing director, is considered one of the leading internal candidates. Other names mentioned by analysts include Anup Bagchi, Paresh Sukthankar, Vibha Padalkar and Amitabh Chaudhry.
The bank has faced leadership challenges earlier this year, including the resignation of part-time chair Atanu Chakraborty over governance and ethical concerns.
HDFC Bank also continues to work on realizing the full benefits of its $40 billion merger with mortgage lender HDFC, completed in 2023.
