India’s largest private lender HDFC Bank sees shares rise after CEO announces surprise exit

A man walks past a HDFC Bank stall at the Global Fintech Fest in Mumbai, India, 06 September, 2023. Nurphoto | Nurphoto | Getty ImagesShares of HDFC Bank, India's largest private sector lender, rose 2.5% Monday before paring gains, after Chief Executive Sashidhar Jagdishan made a surprise announcement about exiting the bank after the end of his term in October.Analysts believe that the successor's profile could offer the bank re-rating potential, especially as the stock has been battered since the start of the year. As per LSEG data, shares of HDFC have tanked 27% since the start of the year compared with an 8% drop of the benchmark Nifty 50 index. The next chief executive will need to accelerate growth, improve deposit mobilization and returns, and rebuild confidence around governance and senior-management stability, global brokerage Nomura said in a report on Sunday."A credible successor could become a meaningful rerating catalyst," it said but added that the stock would "remain under pressure in the near term" until there is clarity on the next chief executive and the direction in which he will steer the bank.This is the second time this year that the bank has been embroiled in ...