HDFC Bank shares rise 3% as lender shortlists CEO candidates. Why Bernstein, Nomura, others see up to 62% upside

Shares of HDFC Bank rallied 3% to their day’s high of Rs 727 on the NSE on Tuesday after the private lender submitted two candidates’ names to the RBI for the role of CEO. This formally begins the succession process for Sashidhar Jagdishan, who is due to retire later this year, with brokerages maintaining their bullish calls for the stock.

While the lender has not named the two candidates yet, people familiar with the matter told The Economic Times that deputy managing director Kaizad Bharucha and one external candidate are on the list. ICICI Prudential Life CEO Anup Bagchi and Citi India CEO K Balasubramanian are among the prospective picks for the external candidate, sources said.

Also read | HDFC CEO race: One insider, one outsider in contention for the top job

This comes as concerns over the governance cloud that began in March this year after its former part-time Chairman Atanu Chakraborty resigned, stating that some practices within the bank did not match his personal values and ethics, continue to ease. The governance cloud led to a massive selloff in the shares of the company that recovered slightly after the bank made leadership changes.

Nomura on HDFC Bank share price

Nomura believes that the possible internal appointment of Kaizad Bharucha could provide initial relief by ensuring continuity and limiting disruption. Kaizad’s familiarity with the bank and its businesses would also allow for a smoother transition, it said. However, it added that a credible external candidate could offer a longer runway and a cleaner slate.

“In our view, this could be more significant for the stock over the medium term, as a new leader would have greater scope to reassess strategy, challenge existing practices and drive a strategic reset. With the stock having materially underperformed, a credible external appointment with a strong operating track record could therefore emerge as a catalyst for a re-rating, particularly if accompanied by a clear roadmap on growth, deposits, margins and returns,” Nomura said.
The international brokerage maintained its ‘Buy’ call on the stock with a target price of Rs 950 apiece, implying more than 34% upside potential from the stock’s previous closing price of Rs 708.25 apiece on NSE.

Bernstein on HDFC Bank share price

Bernstein maintained its ‘Outperform’ rating on the shares of HDFC Bank with a target price of Rs 1,150 apiece. This implies an upside potential of more than 62% over the stock’s previous closing price.

The international brokerage noted that the board of HDFC Bank has proposed elevating Jimmy Tata to the role of whole-time director, and bring the total number of seats to four, ET Now reported. It added that the leadership succession timeline remains on track ahead of the current CEO’s retirement.

Also read | HDFC Bank shares hit 52-week lows over consecutive sessions while analysts scream Buy. Has the stock hit its bottom?

Macquarie on HDFC Bank share price

Macquarie maintained its ‘Outperform’ rating on the shares of HDFC Bank with a target price of Rs 1,150 apiece. This implies an upside potential of more than 62% over the stock’s previous closing price.

The international brokerage said an external CEO appointment is viewed as the primary catalyst for a stock re-rating.

HDFC Bank share price

Shares of heavyweight HDFC Bank have been hitting fresh 52-week lows for several consecutive sessions now, even as analysts maintained their ‘Buy’ calls after the stock tumbled around 29% in 2026 so far. The stock of India’s largest private lender dropped to a fresh 52-week low of Rs 681.90 apiece on Friday. This marks more than a 33% fall in less than 11 months after hitting a record high of Rs 1,020.50 apiece in October last year.

HDFC Bank shares have been the weakest among all Nifty Bank constituents, declining 29% so far in 2026. Not only has the performance been disappointing this calendar year, but the stock has also delivered weak returns over the past three to five years, declining nearly 14% and 9%, respectively. “Despite the significant underperformance of this banking heavyweight, there are still no meaningful signs of a turnaround, with the technical setup remaining highly uninspiring and weak,” said Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One.

The stock is now displaying oversold readings across several technical parameters, while the significant disparity in its performance also leaves room for a short-term bounce, according to Rathi. “Hence, a near-term recovery cannot be ruled out. However, the broader technical setup and trend remain firmly bearish, with no meaningful signs of a trend reversal visible at this stage,” he added.

Also read | BofA turns bullish on Nifty, forecasts 12% upside by December

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.