HDFC Bank shares in focus after AT1 bond redemption announcement
The stock opened at ₹712.10, the same as its previous closing level; in the pre-open session, HDFC Bank shares had traded at the ₹719 level
HDFC Bank shares remained largely unchanged on the NSE on Monday, trading at ₹709.80 around 10.26 am. The stock opened at ₹712.10 and hovered between ₹708.75 and ₹713 earlier in the day. Pre-open, shares traded at ₹719. The volume of 29.44 lakh shares was traded, with a turnover of ₹209.26 crore. HDFC Bank had previously seen its 52-week low of ₹698.50 on September 1.
The bank's market capitalization was valued at ₹10.94 lakh crore, with an adjusted P/E of 13.70. For the week, the stock's absolute return was a modest +0.04 percent, marking a decline of nearly 3 percent over the month and a 28.44 percent slump year-to-date.
Recently, HDFC Bank disclosed its decision to exercise the call option for ₹739 crore Additional Tier 1 Notes issued on September 30, 2021. These bonds, denominated in rupees and issued overseas, are set to be redeemed in full on the first call date of September 30, 2026, along with accrued and unpaid interest or distributions. This information was communicated to the trustee, Citibank, N.A., in London, through a letter dated September 1, 2026, outlining instructions for the issuance of a notice of redemption to eligible bondholders.
The succession process at HDFC Bank has gained prominence following managing director and chief executive Sashidhar Jagdishan's decision not to seek reappointment after completing his term on October 26. Jagdishan has dedicated nearly three decades to the bank, serving in various capacities. The HDFC Bank board has pledged to expedite the selection and appointment of Jagdishan's successor.
Jagdishan's reappointment had been a subject of speculation following the resignation of non-executive chairman Atanu Chakraborty in March due to concerns over ethics and governance practices at the lender. Earlier in July, the bank board found lapses in deposit arrangements with the Maharashtra State Road Development Corporation, imposing a fine of ₹1 lakh on Jagdishan and other executives, deeming their actions not mala fide.
Allegations also surfaced that HDFC Bank overpaid card rates to secure high-value deposits from the Maharashtra State Road Development Corporation, routing them as marketing expenses. Additionally, the bank faced accusations of mis-selling Credit Suisse’s AT-1 bonds to diaspora clients from its Dubai DIFC branch, leading to a ban on the bank's ability to onboard new customers or conduct new business in India last year.
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