HDFC Bank shares jump 3%, among top Nifty gainers as CEO succession moves to RBI; Nomura sees 34% upside

As per the latest business developments, HDFC Bank shares jumped 3 percent in early session on September 15, emerging among the top gainers on the Nifty 50 after the lender formally moved ahead with its CEO succession process by submitting two candidates to the Reserve Bank of India (RBI). Nomura maintained its ‘buy’ rating on the stock, saying either an internal appointment or a credible external candidate could help address the leadership overhang.

The stock advanced 2.99 percent to Rs 729.40, extending its 2.08 percent gain from Friday. The broader market was additionally firmly elevated, with the Sensex up 440 points, or 0.59 percent, at 75,222 and the Nifty 50 up 120 points, or 0.51 percent, at 23,518 around 9:17 am.

HDFC Bank stated on September 12 that its board had submitted two candidates, ranked in order of preference, to the RBI for appointment as managing director and CEO for a three-year term. The bank did not disclose their identities.

The move formally advances the succession process ahead of incumbent MD and CEO Sashidhar Jagdishan’s retirement in October. Under banking regulations, the RBI’s approval is required for the appointment of managing directors and CEOs of private-sector banks.

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Kaizad Bharucha, HDFC Bank’s deputy managing director and a long-serving senior executive, is understood to be the internal contender for the top job. The other candidate recommended by the board is stated to be an experienced private-sector banker, according to notes.

Nomura maintained its ‘buy’ call on HDFC Bank with a target price of Rs 950 per share, implying around 34 percent upside from Friday’s closing price of Rs 708.25. The brokerage stated an internal appointment could provide near-term relief through continuity and a smoother leadership transition, with Bharucha’s familiarity with HDFC Bank working in his favour.

That stated, a credible external appointment could prove more significant over the medium term by enabling a broader strategic reset, Nomura stated. Given HDFC Bank’s material stock underperformance, the brokerage sees scope for a re-rating if the new leadership can establish a clear roadmap for expansion, deposit mobilisation and margins.

HDFC Bank shares have fallen 28.5 percent so far in 2026, sharply underperforming the Nifty 50, which is down 10.5 percent over the same period. The lender had a market capitalisation of Rs 10.92 lakh crore based on Friday’s close.

The succession process follows Jagdishan’s decision not to seek reappointment after leading HDFC Bank since 2020. The choice between continuity through an internal candidate and a potentially broader reset under an external CEO has since emerged as a key factor in the investment case for the lender.

HDFC Bank has additionally moved to strengthen its senior leadership structure. It reappointed V Srinivasa Rangan as a whole-time director and appointed Chief Credit Officer Jimmy Tata to the board in the same capacity. Bharucha is already a whole-time director. The bank will create a fourth whole-time director position to be occupied by the incoming MD and CEO.