Business Desk – HDFC Bank Share: Shares of HDFC Bank witnessed a rise for the second consecutive day on Tuesday. At one point during trading, the stock had risen by more than 1 percent. At 11 am, HDFC Bank shares were trading at Rs 744.65 with a gain of 0.70 per cent. The stock has risen about 4 percent in the last one week.
Amidst this boom, the stir regarding the new MD and CEO of the bank has also intensified. According to the news of Economic Times, the bank has intensified the search for new MD and CEO. It is reported that RBI is taking feedback regarding the possible appointment of Anup Bagchi on this post.
Anup Bagchi's name is at the forefront
Anup Bagchi is currently the MD and CEO of ICICI Prudential Life Insurance. He is being said to be the frontrunner among the possible contenders for the new MD and CEO of HDFC Bank.
Bagchi is the CEO of ICICI Prudential Life from 2023. Before this, he was Executive Director in ICICI Bank since 2017. During this time he was responsible for Wholesale Banking, Transaction Banking, Markets and Proprietary Trading.
Appointment of new CEO necessary before October 26
HDFC Bank's current MD and CEO Shashidhar Jagadeesan is scheduled to retire on October 26. In such a situation, the bank will have to appoint a new MD and CEO before this. For this reason the search for a new chief has become important.
Investors are also keeping an eye on the appointment of a new CEO, as it may impact the future strategy of the bank.
Shares fell more than 25 percent this year
HDFC Bank shares have been under pressure for the last few years. The stock has fallen more than 25 percent so far this year. In comparison, Nifty has declined by 10.5 percent in the same period.
HDFC Bank is the largest private bank in the country and its market capitalization is around Rs 11.4 lakh crore. The merger of HDFC with the bank was announced in 2022, while the merger process was completed in 2023. HDFC was the largest home loan company in the country.
Nomura gave a target of Rs 950
Foreign brokerage firm Nomura had advised to buy shares of HDFC Bank last week. He has given a target price of Rs 950 for the share. The brokerage firm has also expressed hope for rerating of the share.
According to Nomura, after the appointment of the new MD and CEO, the uncertainty regarding the leadership of the bank may end. If an outsider is made the head of the bank, then there may be a change in the growth strategy of the bank in the medium term.
Pressure visible in the market also
On September 22, pressure was seen on the major indices of the stock market. The markets opened strong in the morning, but later came under pressure due to profit booking.
At 11:24 am, Nifty was trading at 23,400 with a weakness of 0.7 percent or 14 points. Whereas the Sensex was down 0.10 percent at 74,787. Pressure was also seen in Bank Nifty.
