HDFC Bank share price surges over 7% in 5 sessions; new leadership and challenges ahead

HDFC Bank shares were trading in the green in the morning session on Wednesday, November 4, even as benchmark indices remained subdued.

The stock advanced as much as 2.17% to ₹741.30 on the NSE. At 11:41 am, it was trading at ₹731.80, up 0.87%.

The recent rally has added to the stock's momentum, with HDFC Bank shares gaining over 7% in the past five trading sessions, based on the prevailing market price.

India's largest private sector lender HDFC Bank last Tuesday (October 27) said that Anup Bagchi had taken charge as its managing director and chief executive.

His predecessor, Sashidhar Jagdishan, vacated office on Monday after the completion of his term, the bank informed exchanges.

Bagchi, an ICICI Group veteran, is the first outsider to head HDFC Bank in its over-three-decade history. His previous assignment was as the MD and CEO of ICICI Prudential Life Insurance.

What lies ahead?

Bagchi joins HDFC Bank at a time when the lender is battling a slew of challenges, including ones on core income growth and margins, which have made investors wary.

In brief comments on an earnings call which he attended, Bagchi said that part of the work on the bank's 2023 merger with housing finance major parent HDFC is yet to be executed and also announced that he will be meeting all the stakeholders to better understand the bank.

Bagchi had also appreciated the strong and committed leadership at HDFC Bank, amid speculation over whether he continues with the same team or gets new people.

Transition and governance issues

Ahead of his joining, Kayezad Bharucha, a HDFC Bank veteran who is serving as the deputy managing director, announced his intent to retire by December this year.

Jagdishan had announced his unavailability for an extension amid allegations of shortcomings on the governance front.

The bank's own probe had also found shortcomings in the practice of booking high quantum deposits by paying off an extra amount over and above the card rate to the depositor under a different head. Jagdishan was also slapped with a fine for the practice.

The surprise resignation of the bank's non-executive chairman Atanu Chakraborty in March this year, flagging values and ethics, blew the lid off certain practices at the largest private lender.

HDFC Bank Q2 FY27 earnings

On a standalone basis, net profit of the country's largest private sector lender grew 4.7% to ₹19,510 crore for July-September, according to an exchange filing.

Its total income rose to ₹97,258 crore from ₹91,040 crore a year ago, and the total expenditure surged to ₹67,774 crore from ₹63,117 crore.

Money set aside as provisions and contingencies inched up to ₹3,573.62 crore from ₹3,500 crore in the year-ago period.

The bank said that excluding treasury performance, profit after tax showed a growth of 12.6% year-on-year.

The gross non-performing assets ratio improved to 1.11% from 1.17% a quarter ago and 1.24% in the year-ago period.

Overall capital adequacy stood at 18.9% as of September 30, 2026, which was down from 20% a year earlier.