India’s largest private lender HDFC Bank sees shares rise after CEO announces surprise exit
HDFC Bank shares rose following the surprise resignation announcement of CEO Sashidhar Jagdishan. Analysts suggest that a credible successor could help the bank recover from a year of poor stock performance and governance concerns.
Why it matters
As India's largest private lender, leadership stability at HDFC is critical for the stability of the Indian financial market.
Shares of HDFC Bank , India's largest private sector lender, rose 2.5% Monday before paring gains, after Chief Executive Sashidhar Jagdishan made a surprise announcement about exiting the bank after the end of his term in October.
Analysts believe that the successor's profile could offer the bank re-rating potential, especially as the stock has been battered since the start of the year. As per LSEG data, shares of HDFC have tanked 27% since the start of the year compared with an 8% drop of the benchmark Nifty 50 index.
The next chief executive will need to accelerate growth, improve deposit mobilization and returns, and rebuild confidence around governance and senior-management stability, global brokerage Nomura said in a report on Sunday.
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