HDFC Bank shares rise for second day as CEO search progresses; Anup Bagchi seen as frontrunner

Fresh updates from the financial markets indicate that HDFC Bank shares rose nearly 1 percent, extending upside for a second straight session on Tuesday after The Economic Times noted progress in the lender’s closely watched search for a new MD and CEO. The Reserve Bank of India (RBI) has reportedly begun seeking feedback on the candidature of Anup Bagchi, at present MD and CEO of ICICI Prudential Life Insurance, who is stated to have emerged as the frontrunner for the job.

The HDFC Bank stock rose 0.9 percent to Rs 746.50 in early session, after gaining 1.16 percent in the previous session. That stated, the stock stays down 25.4 percent so far in 2026, compared with a 10.5 percent slide in the Nifty 50. The lender’s market capitalisation stood at around Rs 11.4 lakh crore.

The Economic Times note stated that the RBI has sought feedback from insurance regulator IRDAI and ICICI Bank CEO Sandeep Bakhshi on Bagchi’s candidature. The central bank is assessing his potential return to mainstream banking after more than three years at ICICI Prudential Life Insurance, according to the report.

Bagchi, 55, has headed ICICI Prudential Life since 2023. Before moving to the insurer, he was an executive director at ICICI Bank from 2017, with responsibilities spanning wholesale banking, transaction banking, markets and proprietary trading.

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The regulatory assessment comes with the clock ticking on HDFC Bank’s succession process. Incumbent MD and CEO Sashidhar Jagdishan’s term ends on October 26 after he informed the board last month that he would not seek another term.

HDFC Bank on September 12 submitted two candidates, ranked in order of preference, to the RBI for appointment as MD and CEO for a three-year term. The bank did not disclose their identities at the time. According to The Economic Times report, Bagchi is one of the two candidates, while HDFC Bank deputy managing director Kaizad Bharucha is the other.

Bharucha, 61, has been a whole-time director at HDFC Bank since June 2014. That creates a potential regulatory complication: he would reach the RBI’s 15-year ceiling for continuous tenure as a whole-time director, MD or CEO in June 2029, before completing a full three-year term as CEO.

The developments add clarity to a succession process that has emerged as a key trigger for HDFC Bank shares after their sharp underperformance this year.

Nomura last week maintained a ‘buy’ rating on HDFC Bank with a target price of Rs 950. The brokerage had stated an internal appointment could provide near-term relief through continuity and a smoother transition, while a credible external candidate could potentially enable a more significant strategic reset over the medium term. Nomura additionally sees scope for a re-rating after the stock’s material underperformance, with a clear roadmap on expansion, deposits and margins under the new leadership potentially acting as a catalyst.

At Rs 746.5, HDFC Bank shares have already recovered over 5 percent from their September 11 close of Rs 708.25, even as the stock stays deeply negative for the year.