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HDFC Bank shares rise after CEO succession search accelerates
Investors reacted to news that CEO Sashidhar Jagdishan will not seek reappointment, as analysts said a faster appointment could reduce uncertainty.
HDFC Bank shares rose around 2% in early trade Monday after investors digested that CEO Sashidhar Jagdishan will not seek reappointment, with analysts pointing to an expedited search for a successor as a way to reduce uncertainty, according to LiveMint Markets citing Reuters.
The stock is about 40% foreign-owned as of June-end, and it is down roughly 26% so far this year. Jagdishan has led since October 2020, including overseeing the merger of HDFC Bank with then-parent Housing Development Finance Corp. Ltd., creating one of India’s largest financial services groups.
While his tenure was described by Macquarie as marked by resilient asset quality and the successful merger, returns to shareholders and profitability metrics have lagged, the article said. LiveMint Markets also reported that analysts said the transition could shift focus toward strengthening governance, execution, and the bank’s franchise and image.
Two people familiar with the matter told Reuters that Deputy Managing Director Kaizad Bharucha is likely to be considered as one option among two for the next CEO, while the bank is also weighing an external candidate in line with central bank rules, LiveMint Markets added.