On Monday, October 5, HDFC Bank shares opened higher, rising as much as 1.8% to ₹734.20 on the NSE, before reversing all gains and falling as much as 2.16% to a low of ₹705.60. The stock movement followed the announcement that Anup Bagchi, who has been associated with ICICI Bank and its subsidiaries since 1992, will succeed Sashidhar Jagdishan as chief executive and managing director. Bagchi’s appointment was cleared by the RBI on Thursday, October 1, and he will take over on October 27 for a three‑year term.

Bagchi, a 56‑year‑old alumnus of IIT‑Kanpur and IIM‑Bangalore, has served as managing director and chief executive of ICICI Prudential Life Insurance since 2023 and as executive director of ICICI Bank for six years, overseeing both retail and wholesale banking. His succession removes a key overhang for the stock, as Jagdishan’s six‑year stint was marred by allegations of unethical conduct and questionable governance practices towards the end. The appointment is expected to reduce uncertainty and address the CEO succession issue that had been an overhang on the stock.

In its Q2 FY27 (September quarter) business update, HDFC Bank reported average advances under management of ₹31,872 billion, a growth of around 14.0% over ₹27,946 billion for the corresponding September 2025 period. Period‑end advances under management rose to approximately ₹33,075 billion, a growth of around 15.3% over ₹28,688 billion as of September 30, 2025. Period‑end gross advances aggregated to approximately ₹32,195 billion, a growth of around 16.3% over ₹27,692 billion as of September 30, 2025.

Average deposits for the September 2026 quarter were ₹31,665 billion, a growth of around 16.8% over ₹27,105 billion for the corresponding September 2025 period. CASA deposits averaged ₹9,712 billion, a growth of around 10.7% over ₹8,770 billion, while time deposits averaged ₹21,952 billion, a growth of around 19.7% over ₹18,335 billion. Period‑end deposits were approximately ₹33,275 billion, a growth of around 18.8% over ₹28,018 billion, with period‑end CASA deposits at ₹10,520 billion, a growth of around 10.8% over ₹9,492 billion, and period‑end time deposits at ₹22,755 billion, a growth of around 22.8% over ₹18,526 billion.

Under the RBI’s FCNR(B) deposit swap facility introduced on June 8, 2026, HDFC Bank mobilised foreign currency deposits worth $11.5 billion (₹1,103.4 billion) through August 31. Its overseas branches extended $5.7 billion (₹547.7 billion) in loans against these deposits, while standby letters of credit issued to other banks for such loans amounted to $3.1 billion (₹293.4 billion). Separately, the bank issued $2.5 billion (₹239.6 billion) of USD‑denominated senior unsecured bonds during June–August 2026.

CITI noted that FCNR deposits are fuelling headline growth, while core advances growth continues to trail the system average; excluding FCNR, core deposits and advances growth stood at 15.3% and 14.5%, respectively, with asset quality expected to remain resilient. JPMorgan viewed Bagchi’s appointment as a positive inflection point that could reduce the stock overhang and highlighted a strategic reset and revival in net interest income growth as key for a rerating, noting the stock has de‑rated 32% year‑to‑date. Morgan Stanley said the RBI’s approval addresses the CEO succession issue, reducing uncertainty, and that HDFC Bank has underperformed the Bankex by 19 percentage points year‑to‑date.