HDFC Bank (HDFCB IN) – Event Update – MD & CEO, Mr. Jagdishan decides not to continue – BUY
Published on 31 Aug 2026
Mr. Jagdishan has decided not to seek re-appointment as MD & CEO upon completion of his current term on 26th Oct’26, despite board’s persuasion; his exit comes after challenges on corporate governance. While the Board has not announced a successor, Mr. Kaizad Bharucha (Deputy MD) may be appointed to bring stability, and he is eligible to be in office under RBI norms until Apr’29. The bank may also put forward an external name. This event would be negative and near-term pressure may persist till succession clarity emerges, although stock is attractive at 1.4x Mar'28E core ABV, (30% discount to ICICIB) but medium-term return would hinge on strategy and execution. We trim multiple to 1.9x from 2.1x. and trim TP to INR 950 from INR 1,040. Retain ‘BUY’.
