HDFC Bank Shares Rise 2% After Anup Bagchi Named New MD & CEO, Gives Up Gains Later

HDFC Bank shares rose on October 5 as the private sector lender announced Anup Bagchi as its next Managing Director and Chief Executive Officer and reported healthy business growth for the September quarter. However, later the stock gap up initial gains.

HDFC Bank shares surged up to Rs 734.20 apiece in the morning sesison, up by 1.80 per cent from previous close. At 10:10 am, HDFC Bank shares traded at Rs 716.10 apiece on the NSE, down 0.71 per cent.

The surge in stock’s price also comes amid a broader market rebound after eight weeks of consistent sell-off. The Nifty 50, around the same time, quoted higher by 0.60 per cent, up by 133.25 points, at 22,555.20.

Bagchi’s appointment brings clarity to the leadership transition at the bank. He will succeed Sashidhar Jagdishan, whose current term as MD & CEO ends on October 26.

The bank said Bagchi joined its board as an Additional Director with effect from October 2. His appointment as MD & CEO is for a three-year term.

Bagchi brings more than 30 years of experience with the ICICI Group. He is currently the outgoing MD & CEO of ICICI Prudential Life Insurance.

The leadership change follows Jagdishan’s decision not to seek another term at the helm of HDFC Bank, bringing to a close months of uncertainty over who would lead the lender next.