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

HDFC Bank shares extended their gains for the second consecutive session on Tuesday after reports indicated progress in the bank’s search for a new managing director and chief executive officer.

The stock climbed 0.9% to Rs 746.50 in early trade after rising 1.16% in the previous session. The movement followed reports that the Reserve Bank of India (RBI) has begun seeking feedback on the candidature of Anup Bagchi, who is currently the MD and CEO of ICICI Prudential Life Insurance.

RBI reviews potential candidates

According to reports, the RBI has sought views from the Insurance Regulatory and Development Authority of India (IRDAI) and ICICI Bank CEO Sandeep Bakhshi regarding Bagchi’s candidature.

The central bank is assessing his suitability for a return to mainstream banking after more than three years in the insurance sector.

Bagchi, 55, has led ICICI Prudential Life since 2023. Before joining the insurer, he served as executive director at ICICI Bank, overseeing areas including wholesale banking, transaction banking, markets and proprietary trading.

The leadership search gained urgency after current HDFC Bank MD and CEO Sashidhar Jagdishan informed the board that he would not seek another term. His tenure ends on October 26.

Succession process gains market attention

HDFC Bank submitted two names, in order of preference, to the RBI on September 12 for appointment as CEO for a three-year term.

While the bank did not reveal the candidates, reports identified Bagchi and HDFC Bank deputy managing director Kaizad Bharucha among those under consideration.

Bharucha’s candidature could face a regulatory consideration as he would reach the RBI’s 15-year limit for continuous tenure as a whole-time director, MD or CEO in June 2029.

The CEO transition has become a key focus for investors after HDFC Bank shares underperformed in 2026. Brokerage Nomura retained its ‘buy’ rating on the stock and said a clear leadership roadmap could support recovery through improved growth, deposits and margins.