HDFC Bank Share Price Today In Green As Brokerages Split Amid Suspense Over Next CEO | Check Target Price

Shares of HDFC Bank Limited opened higher during Monday's intraday trading session as the private lender prepares for a leadership transition. The suspense over the next MD and CEO will also keep the bank stock in the spotlight. Earlier, HDFC Bank MD & CEO Sashidhar Jagdishan announced that he will not be seeking reappointment once his tenure ends on October 26 this year.

HDFC Bank Leadership Overhaul

HDFC Bank, on Saturday, said that its Chief Executive Officer Sashidhar Jagdishan will not seek reappointment when his term ends on October 26. The development has come months after HDFC Bank entered into a fiasco after then Chairman Atanu Chakraborty resigned.

HDFC Bank Share Price Outlook Amid Successor Suspense

HDFC Bank's share price has significantly underperformed its peers over the last few years, with a tough adjustment period after the merger and recent governance concerns. The leadership overhaul will help to address the overhang and aid investor sentiment too, according to a Motilal Oswal report released on Monday.

"The overhaul in its leadership team will help to address the overhang and aid investor sentiment. We expect the bank's operating performance to improve from 2HFY27 onward as we project earnings to grow in the mid-teens in FY28E after sluggish trends over FY24-27E," stated the brokerage in its report.

CEO Exit To Pave Way For Credible Successor

S Jagdishan's resignation is a cleaner outcome, as a term extension from RBI would have been difficult amid recent operational and governance lapses. "This gives the board more time to identify a successor. Mr Bharucha (DMD) could emerge as a pragmatic short-term ~two-year transition candidate due to 15-year board tenure capping by RBI, while an internal/external successor is groomed," stated Nuvama in its report.

HDFC Bank Share Price Target

Motilal Oswal maintained a 'Buy' rating for HDFC Bank with a target price of Rs 925 per share indicating a 28% upside in its valuation. Nuvama also maintained a 'Buy' rating with a target price of Rs 875 per share. Antique Stock Broking Limited maintained a 'Buy' rating with a target price of Rs 1015 per share.

HDFC Bank share price was trading 2.6% higher at Rs 738.7 per share on BSE at 9:27 am with a market capitalisation of Rs 11,38,496.56 crore. The stock had touched an intraday high of Rs 739.50 per share and an intraday low of Rs 721.60 per share.

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