HDFC Bank Shares Gain 2% On BSE After Anup Bagchi Named As CEO; Significant Q2 Growth Adds To Investor Confidence

HDFC Bank has appointed Anup Bagchi as its new Managing Director and Chief Executive Officer (MD & CEO), ending months of uncertainty around the leadership of India's largest private-sector lender. Following the change, the HDFC Bank shares gained 2% on the Bombay Stock Exchange (BSE) on Monday, 5 October 2026.

Bagchi will take over after Sashidhar Jagdishan's term concludes on 26 October 2026. He has already joined the bank's board as an Additional Director for a three-year term as MD & CEO, effective 2 October 2026.

On the BSE at 10:32 am, HDFC Bank shares were trading at ₹716.25, down 0.43% compared with a previous close of ₹719.35. The stock opened at ₹730.90, touched an intraday high of ₹734 and slipped to a low of ₹713.20 during the early trade.

Bagchi’s Experience And Strategic Changes Could Support HDFC Bank

Anup Bagchi is an ICICI Group veteran with more than 30 years of experience and is currently the outgoing MD & CEO of ICICI Prudential Life Insurance.

The HDFC Bank CEO appointment has received a positive response from brokerages. Experts also see potential support from timely changes to the management team, stronger retail credit growth, improved cross-sell fee opportunities and a measured shift towards higher-risk segments.

These factors could contribute to earnings growth and a re-rating from the bank's 1.4-times estimated FY28 adjusted price-to-book valuation.

HDFC Bank Q2 Growth At Double-Digit Rates

HDFC Bank’s average advances under management were ₹31.87 lakh crore in the September 2026 quarter, up over 14% from ₹27.95 lakh crore a year ago. Period-end advances under management reached approximately ₹33.08 lakh crore at 30 September 2026, up about 15.3% from ₹28.69 lakh crore a year before.

Period-end gross advances rose around 16.3% year-on-year (YoY) to approximately ₹32.20 lakh crore as of 30 September 2026, compared with ₹27.69 lakh crore in the corresponding period.

On the deposit side, average deposits stood at ₹31.67 lakh crore during the quarter, rising around 16.8% from ₹27.11 lakh crore in the year-ago period. Average current account and savings account (CASA) deposits increased around 10.7% YoY to ₹9.71 lakh crore from ₹8.77 lakh crore in the September 2025 quarter.

HDFC Bank Sees Multiple Potential Drivers For A Re-Rating

About 70% of the loans of HDFC Bank are linked to external benchmark lending rates (EBLR) or floating rates. This might turn the lender into a potential beneficiary if rates go up.

The bank can also reorient its loan mix toward higher risk-adjusted categories, such as small and medium enterprise (SME) and business banking loans, gold loans and unsecured personal loans. Such a shift could help improve return on assets.

Meanwhile, underlying deposit growth was noted around 15% YoY after excluding foreign currency non-resident (FCNR) deposits. Underlying loan growth was 14.3% after excluding foreign currency term loans (FCTL).

Also, HDFC Bank's valuation gap against peers including ICICI Bank, Kotak Mahindra Bank, Axis Bank and State Bank of India has been disrupted. With the succession issue now addressed, the brokerage believes timely team reorganisation could strengthen execution and contribute to a re-rating.

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