From PSU dividends to CFO exits: Why banking stocks PNB, Axis, HDFC Bank, among others, are in focus

Banking stocks such as HDFC Bank, Axis Bank, Bandhan Bank, YES Bank, and state-run lenders Punjab National Bank (PNB), Canara Bank, Bank of Baroda (BoB) and Indian Bank are expected to be on investors' radar on Tuesday, June 30, following a string of developments, including top-level management changes, dividend payouts and fund-raising plans.

HDFC Bank

The board of HDFC Bank on Monday appointed former Finance Secretary Rajiv Kumar as its new chairman, who had been instrumental in revitalising public sector banking and the financial sector.

Kumar, who later served as the 25th Chief Election Commissioner of India, is also credited with setting a world record for overseeing the 2024 General Election, where the largest number of voters participated.

He would replace Atanu Chakraborty, who abruptly resigned citing ethical concerns in March.

The board approved the appointment of Rajiv Kumar as an Independent Director of the bank for a period of 4 years, with effect from June 30, 2026, HDFC Bank said in a regulatory filing.

It also cleared, subject to the approval of the Reserve Bank of India (RBI), the appointment, including remuneration, of Kumar as a Part-time Chairman of the bank for a period of three years, effective from the date as approved by the central bank, it said.

As Secretary, Department of Financial Services (2017-2020), Kumar assumed charge at a time when public sector banks were grappling with high levels of unrecognised NPAs, capital inadequacy, equity and debt being diverted, governance challenges, including large consortiums, NBFCs struggling to fill micro credit gaps post demonetisation, ponzy schemes sucking poor's little savings, etc, the bank said in his profile.

Axis Bank and Bandhan Bank

Both private lenders announced the resignation of their chief financial officers (CFOs) ahead of the finalisation of first-quarter results.

Axis Bank said CFO Puneet Sharma, who served in the role for six years, has resigned to pursue the next phase of his professional journey, while Bandhan Bank's CFO Rajeev Mantri also stepped down, marking an unusual leadership churn in the sector.

The disclosures by the two banks come days after Bhavin Lakhpatwala, an HDFC Bank veteran, quit as the executive vice president at the largest private sector lender to join smaller rival RBL Bank as its CFO.

News agency PTI reported that it is widely believed that Sharma is set to take over as the CFO of HDFC Bank after incumbent Srinivasan Vaidyanathan's term ends in October.

Axis Bank said Sharma will be relieved of his services on August 31 this year. Mantri is widely believed to take over Sharma's position as the CFO at Axis Bank.

It also said that the board approved the reappointment of CH S S Mallikarjunarao as an independent director of the bank for a second term of four years with effect from February 1, 2027, up to January 31, 2031, subject to the approval of the members of the bank.

The board also approved the reappointment of Munish Sharda as whole-time director (designated as executive director) of Axis Bank for a further period of three years with effect from February 27, 2027, up to February 26, 2030, subject to approval of the Reserve Bank of India and the members of the bank, it said.

Four PSU banks pay ₹9,439 crore dividend to govt for FY26

Public sector lenders Punjab National Bank (PNB), Canara Bank, Bank of Baroda (BoB) and Indian Bank together paid a dividend of ₹9,439 crore to the government for the financial year 2025-26 on Monday.

PNB MD & CEO Ashok Chandra presented a dividend cheque of ₹2,416 crore for FY 2025-26 to Finance Minister Nirmala Sitharaman in the presence of Financial Services Secretary Sanjay Lohiya, the bank said in a post on X.

Newly appointed Canara Bank MD and CEO Brajesh Kumar Singh also presented a dividend cheque of ₹2,397 crore to the Finance Minister during the day.

For the financial year 2025-26, Canara Bank declared a dividend of ₹4.2 per share, representing 210% of the face value of ₹2 each, the lender said in a statement.

The dividend payout is a testament to Canara Bank's strong financial performance and its ongoing commitment to creating long-term value for all stakeholders, including its majority stakeholder, the Government of India, it said.

In its statement, BoB said the bank's MD and CEO, Debadatta Chand, presented a dividend cheque of ₹2,811 crore to the Finance Minister.

Indian Bank's MD and CEO, Binod Kumar, handed over a dividend cheque of ₹1,815.05 crore to the Finance Minister.

YES Bank

The private lender's board has approved proposals to raise up to ₹7,500 crore through equity and ₹8,500 crore through debt instruments in one or more tranches, subject to shareholder and regulatory approvals. The fund-raising plans are aimed at providing the bank with financial flexibility to support future growth, while any equity issuance will be capped at a maximum dilution of 10%.