Shares of HDFC Bank slid 28.5% year‑to‑date, a sharp dip after the August 31 leadership announcement – a move that has rattled investors and pushed the stock to a 30‑month low.
On October 1, the bank filed a notice with the RBI confirming the approval of Anup Bagchi’s appointment under Section 35B. Bagchi will serve a three‑year term ending October 26, 2029, and will take the reins on October 27, 2026.
Q1FY27 net interest margin fell to 3.26% from 3.38% in Q4FY26, the lowest on record despite a 6.7% year‑on‑year rise in net interest income. The margin squeeze follows the HDFC Ltd merger, which added a lower‑yielding mortgage book.
With Bagchi’s banking, markets and insurance background, analysts expect a sharper focus on deposit mobilisation and funding cost optimisation. The new CEO’s mandate could unlock the full potential of the post‑merger balance sheet and restore investor confidence.
The board’s reshuffle – adding Jimmy Tata as a whole‑time director and re‑appointing V Srinivasa Rangan – signals a tightening of oversight. Market participants will watch how the leadership transition shapes the bank’s medium‑term growth trajectory.