HDFC Bank slips further as Bagchi takes charge amid leadership uncertainty
Bagchi inherits a bank under strain on multiple fronts; broader banking sector pressure added to the headwinds
HDFC Bank's shares experienced a further 0.71% decline, settling at ₹687.90 on the NSE by 12:15 pm on Monday. The stock's slide continued into its second week as new CEO Anup Bagchi officially took the reins. In the traded volume of 115.52 lakh shares worth ₹797.01 crore, sellers outnumbered buyers by a significant margin of 55.32% to 44.68%.
The stock price hovered just ₹6 above its 52-week low of ₹681.90, marking a substantial 31% decline year-to-date compared to the Nifty 50's 13.59% fall in the same period. The price-to-earnings (P/E) ratio has compressed to 13.34, with an adjusted figure of 13.15. Bagchi's arrival comes amidst a bank grappling with multiple challenges.
An internal probe into allegations of confidential information disclosure by two senior executives remains unresolved. Deputy Managing Director Kaizad Bharucha is set to depart by December, further complicating the leadership transition. Sashidhar Jagdishan, who succeeded Bagchi, concluded his tenure after six years of service. The broader banking sector also added to the pressure, as Bank Nifty opened below its previous close near 54,250, breaching the 54,000 mark.
The Relative Strength Index (RSI) has dropped into the mid-30s, indicating persistent selling pressure. Immediate support is identified at 53,800-53,700, while resistance is forecasted at 54,300-54,400. Total market capitalization of HDFC Bank stands at ₹10,60,502.56 crore.
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