HDFC Bank shares fall over 1% amid market weakness; stock turns positive over 6 months

HDFC Bank shares traded over 1% lower in early trade on Friday, November 13, amid broader weakness in the domestic market following negative global cues.

The stock declined as much as 1.76% to hit an intraday low of ₹798, against its previous close of ₹812.30 on the NSE. At 9:53 AM, the scrip was trading at ₹801.50, down 1.32%.

HDFC Bank shares have shown signs of recovery after a challenging phase earlier this year, following several years of underperformance largely attributed to the merger of HDFC Ltd with the bank.

The appointment of Anup Bagchi as the new CEO has also raised expectations of a revival in investor sentiment and a turnaround in the stock's performance. Investors will be watching whether the bank can regain the market confidence and valuation premium it enjoyed around four to five years ago.

Data show that HDFC Bank shares have gained 1.35% over the past five trading sessions, 12.34% in the past month and 7% over the past six months, indicating a gradual recovery in the stock.

However, on a year-to-date (YTD) basis, the scrip remains down 19%, highlighting the extent of its underperformance earlier this year.

What CITI said

CITI has maintained its positive stance on HDFC Bank. The investment firm highlighted that the new CEO's key priorities include optimising the balance sheet, rebuilding the current account and savings account (CASA) deposit base and restoring return on equity (RoE) to above 15%.

Growth in mortgage lending, credit cards and the SME segment could help the bank narrow the gap in loan growth with its peers. CITI also sees improving funding costs, technology-led customer experience and stronger execution as key catalysts for the bank's performance.

Latest update

On November 12, HDFC Bank announced that it had received approval from the Reserve Bank of India (RBI) for the reappointment of V. Srinivasa Rangan as its Whole-time Director, designated as Executive Director, for another year, effective November 23, 2026. The reappointment will be at his existing remuneration, the bank said in a regulatory filing.

HDFC Bank Q2 FY27 earnings

On October 27, Anup Bagchi took charge as the bank's Managing Director and Chief Executive Officer (MD and CEO). His predecessor, Sashidhar Jagdishan, stepped down a day earlier following the completion of his term, the bank informed the stock exchanges.

Bagchi, an ICICI Group veteran, became the first outsider to head HDFC Bank in its over three-decade history. Before joining HDFC Bank, he served as the MD and CEO of ICICI Prudential Life Insurance.

Bagchi took charge at a time when the lender was facing several challenges, including pressure on core income growth and margins, which had weighed on investor sentiment.

Future outlook

Amid speculation over whether Bagchi would continue with the existing senior management team or bring in his own leadership choices for key verticals, Jagdishan said the bank had sufficient management depth and was driven by processes rather than individuals.

Bagchi echoed this view, saying the leadership team had spent several years within the system and remained fully committed to the bank. However, he refrained from commenting on whether he would consider a management reset.

Responding to a question on succession planning and the relatively fewer executive directors on the board, Jagdishan said Bagchi would use his "wisdom to decipher" whom to elevate to the board.

"I can assure you that the talent is available; it is for the board and Anup to decide," Bagchi added.