Prabhudas Lilladher has joined the growing bullish consensus on HDFC Bank, recommending a Buy rating with a target price of ₹950 in its research report dated August 31, 2026. The brokerage has trimmed its multiple to 1.9x from 2.1x and reduced the target price to ₹950 from ₹1,040, while maintaining its positive outlook. This latest recommendation adds to the 28% upside potential from Motilal Oswal's target of ₹925 and 62% upside from Macquarie's target of ₹1,150. The bank is currently trading at ₹720, representing significant upside potential across multiple brokerage recommendations.
CEO Sashi Jagdishan has decided not to seek re-appointment as MD & CEO upon completion of his current term on October 26, 2026, despite board persuasion, according to Prabhudas Lilladher's latest report. His exit comes after challenges on corporate governance, with the board not yet announcing a successor. Mr. Kaizad Bharucha (Deputy MD) may be appointed to bring stability and is eligible to be in office under RBI norms until April 2029. The bank may also put forward an external name, which would be negative and could cause near-term pressure until succession clarity emerges. The stock remains attractive at 1.4x March 2028E core ABV, representing a 30% discount to ICICI Bank.
With Mr. Sashidhar Jagdishan's decision not to seek reappointment as MD & CEO, the board will fast-track the process of selection and appointment of his successor, as reported by Motilal Oswal. The leadership transition will be further accelerated by Mr. Srinivasan Vaidyanathan's superannuation on November 30, 2026, along with other recent changes in the leadership team. Mr. Bhavin Lakhpatwala, Head of Strategy and IR, has already resigned in June 2026 and joined RBL Bank as CFO. Mr. Puneet Sharma, former Axis Bank CFO, is scheduled to take charge as CFO-designate on September 1, 2026. Additionally, Mr. Rajiv Kumar, ex-Chief Election Commissioner and ex-Finance Secretary, has recently taken charge as the new Chairman after the sudden exit of Mr. Atanu Chakraborty. The HDFCB stock has corrected 18% in the past six months amid ongoing uncertainty.
HDFC Bank shares were trading at ₹714.55 in afternoon trade on August 28, up 0.5% from the previous close, recovering after falling to their lowest level in more than a year at around ₹710 in the previous session. The stock has fallen 27.9% so far in 2026, sharply underperforming the Nifty 50, which is down 7.8% over the same period. The modest recovery comes after the decline followed reports of a lawsuit filed against the bank and some of its executives in the US. The private-sector lender has a market capitalisation of more than ₹11.01 lakh crore. Meanwhile, Puneet Sharma, who has been designated as HDFC Bank's new chief financial officer, is scheduled to join the lender on September 1.
Macquarie maintains an Outperform rating on HDFC Bank with a 12-month price target of ₹1,150, implying a potential upside of 62% from the stock's Thursday closing price of ₹712. The brokerage highlights CEO uncertainty with CEO Sashi Jagdishan's current tenure expiring on October 26, 2026, presenting two main scenarios: either a six-month extension or a full three-year tenure. As per Moneycontrol, Macquarie expects the bank's Nomination and Remuneration Committee (NRC) to first evaluate and select a candidate before recommending the name to the board, with the board chaired by Rajiv Kumar then approving the candidate and recommending the appointment to the Reserve Bank of India (RBI) for final decision. The RBI has recently been taking around 30-45 days to approve CEO appointments after receiving recommendations from bank boards.
Motilal Oswal has revised its target price to ₹925 (1.8x FY28E ABV + ₹128 for subs) and maintains its BUY rating on HDFC Bank, expecting the bank to deliver an improved earnings performance from FY28 onward while RoA should sustain at ~1.8%. The brokerage's revised target price reflects confidence in the bank's operational improvements and strategic positioning. The HDFCB stock has corrected 18% in the past six months amid ongoing uncertainty, presenting an attractive entry point for investors seeking exposure to India's leading private-sector lender.
