Summary of this article
Summary
HDFC Bank shares rose 1.80 per cent before giving up gains in morning trade
Anup Bagchi will replace Sashidhar Jagdishan as HDFC Bank’s MD & CEO
HDFC Bank reported strong growth in loans and deposits during the September quarter
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.
HDFC Bank Q2 Business Update
According to the bank’s October 4 exchange filing, HDFC Bank’s average advances under management rose 14 per cent year-on-year to Rs 31.87 lakh crore in the September quarter, from Rs 27.95 lakh crore a year earlier.
Period-end advances under management stood at Rs 33.08 lakh crore, up 15.3 per cent from Rs 28.69 lakh crore a year ago. Gross advances rose 16.3 per cent to Rs 32.20 lakh crore.
Deposits grew 16.8 per cent year-on-year to Rs 31.67 lakh crore on an average basis, compared with Rs 27.11 lakh crore in the year-ago quarter. Average current account and savings account (CASA) deposits increased 10.7 per cent to Rs 9.71 lakh crore.
At the end of September, deposits stood at Rs 33.28 lakh crore, an 18.8 per cent increase from Rs 28.02 lakh crore a year earlier.
