HDFC Bank Shares Rise Up To 1% As RBI Reviews Anup Bagchi’s Candidature For CEO Role

HDFC Bank's shares experienced a second consecutive day of gains on Tuesday, following reports of progress in the search for a new managing director and chief executive officer. The stock price rose by 0.9% to Rs 746.50 in the early trade, higher than the 1.16% increase it saw the previous day. The upward movement followed news that the Reserve Bank of India (RBI) had begun seeking feedback on the candidature of Anup Bagchi, who presently serves as the Managing Director and CEO of ICICI Prudential Life Insurance.

Bagchi's suitability for a return to mainstream banking is being assessed by the central bank, after more than three years in the insurance sector.

The RBI has consulted the Insurance Regulatory and Development Authority of India (IRDAI) and ICICI Bank CEO Sandeep Bakhshi regarding Bagchi's candidature. Bagchi, 55, has been leading ICICI Prudential Life since 2023, and before that, he worked at ICICI Bank, holding key roles in wholesale banking, transaction banking, markets, and proprietary trading.

The urgency to find a new CEO arose when Sashidhar Jagdishan, current HDFC Bank MD and CEO, informed the board that he would not be seeking another term, with his tenure ending on October 26.

HDFC Bank submitted two names for consideration to the RBI, with preference ranked, on September 12. While the bank did not disclose the candidates, reports suggested Anup Bagchi and HDFC Bank deputy managing director Kaizad Bharucha as potential contenders. Bharucha's candidature might face regulatory scrutiny as he would reach the RBI's 15-year continuous tenure limit for whole-time directors, MDs, or CEOs in June 2029.

The CEO transition has garnered significant attention from investors, as HDFC Bank shares underperformed in 2026. Brokerage Nomura maintained its 'buy' rating on the stock, stating that a clear leadership roadmap could aid recovery through enhanced growth, deposits, and margins.