HDFC Bank shares traded at ₹700 on Wednesday, declining 2% during the session and hitting a 52-week low of ₹698.50 in the previous trading session. The stock remains volatile as investors assess the lender's ongoing search for a new CEO after Sashidhar Jagdishan said he would not seek an extension beyond his current term, which ends on October 26. According to The Economic Times, the stock is trading below its 20-day, 50-day and 200-day EMAs, reinforcing the prevailing bearish trend. The RSI is hovering in the 30–40 zone, highlighting continued weakness, while the MACD is trading below the zero line, indicating a bearish momentum setup. Technical analysts identify major support at ₹710 with resistance near ₹750-780, while a sustained move above ₹750 could trigger a short-term bounce towards ₹780 levels.
HDFC Bank announced it will exercise the call option to redeem ₹739 crore of Additional Tier 1 bonds on September 30. Additionally, the bank was reportedly involved in a block deal of 24.6 lakh shares during the trading session. These developments add to the ongoing institutional activity as fund managers continue to accumulate the stock, having bought shares worth around ₹13,530 crore during August. The latest trading data shows trading volumes at 152.15 lakh shares with a traded value of ₹1,068.62 crore, while the total market capitalisation stands at ₹10.82 lakh crore with an adjusted P/E ratio of 13.69.
When Sashidhar Jagdishan steps down as managing director and chief executive on October 26, the bank is actively searching for his successor. According to The Economic Times, Jefferies has identified several potential internal and external candidates for the top job. Among the internal options, Bharucha could be a simpler choice with a potential tenure of 2.8-3 years, given that he was appointed Executive Director in June 2014. The brokerage suggests allowing Bharucha to lead HDFC Bank while preparing for a smoother transition over the longer term. For external candidates, Jefferies identified Anup Bagchi, currently CEO of ICICI Prudential Life and formerly an Executive Director at ICICI Bank; Paresh Sukthankar, former DMD at HDFC Bank who left in 2018; Vibha Padalkar, CEO of HDFC Life; Rajiv Sabharwal, CEO of Tata Capital; and Amitabh Chaudhry, CEO of Axis Bank as potential external candidates.
HDFC Bank shares have fallen nearly 30% so far this year as investors assess the lender's CEO succession process. When Sashidhar Jagdishan steps down as managing director and chief executive on 26 October, he will leave behind a markedly different shareholder register at HDFC Bank. According to Mint analysis of ACE Equity data, HDFC Bank's adjusted share price grew by just 17% between 26 October 2020 and 31 August 2026, making it the second-lowest return among 32 banks studied, beating only Bandhan Bank which fell 45%. This stands in stark contrast to the 20 private-sector banks delivering a median return of 148% and 12 public-sector banks delivering 374% median return over the same period. The Nifty Private Bank index gained 110% while the Nifty PSU Bank index surged 560% during this timeframe.
Domestic institutional investors (DIIs) and public investors have steadily increased their holdings in HDFC Bank even as the stock of the country's largest private bank remained one of the biggest laggards on Dalal Street. According to BS Research Bureau, DII ownership in HDFC Bank rose to 36.3 per cent in the June 2026 quarter, from 31.4 per cent in September 2025, marking an increase of 4.9 per cent. The increase was consistent throughout the period, with DII holding standing at 31.4 per cent at the end of September 2025, increasing to 32.2 per cent in December 2025, 34.9 per cent in March 2026 and reaching 36.3 per cent in June 2026. Mutual funds held 30.62% of HDFC Bank at the end of June 2026, up 17.26 percentage points from 13.36% in December 2020, representing the third-largest increase among the sample of banks, behind Ujjivan Small Finance Bank's 28-percentage-point rise and IndusInd Bank's 21-percentage-point increase.
