HDFC Bank shares: 6 dividends, bonus issue, muted returns | How stock fared under Jagdishan; what's next?

HDFC Bank share returns: India's leading private lender HDFC Bank Ltd has delivered a modest return of 25 per cent under the tenure of Sashidhar Jagdishan as CEO and MD of the lender, who succeeded Aditya Puri from October 27, 2020. HDFC Bank delivered a 3.79 per cent CAGR returns in nearly six years of Jagdishan's helm.

Under Jagdishan's leadership, shares prices of HDFC Bank have jumped to Rs 739.50 on Monday, August 31, 2026 from its close at Rs 591.73 on October 26, 2020. He is set to retire as the CEO and MD of HDFC Bank on October 26, 2026 and will not apply for the third term as lender. Jagdishan has been with the lender since 1996 and served as chief financial officer (CFO) before replacing Puri.

Jagdishan also oversaw the reverse merger of HDFC with HDFC Bank, which came into effect from July 1, 2023, which could be termed as one of the toughest assignments ever in the Indian corporate history. Since then, share prices of HDFC Bank have tumbled more than 13 per cent to Rs 850.88 levels.  

Jagdishan's key achievements as MD & CEO of HDFC Bank According to Ashika Institutional Equities, Jagdishan delivered on key fronts during his tenure including the reverse merger of HDFC and HDFC Bank; strengthened the liability franchise, with deposits consistently outpacing advances post-merger; reduced high-cost borrowings inherited from HDFC; maintained resilient asset quality, and expanded the branch network to 9,700 by FY26.

However, it cited several areas of improvement, citing interactions with Institutional investors, who flagged the bank’s post-merger performance has yet to meet expectations. These include limited operating synergies, cautious credit growth, weak cross-selling and slower RoA and earnings growth, according to Ashika’s note.  

HDFC Bank dividend and corporate actions under Jagdishan Besides the merger of HDFC Bank and HDFC, the private lender has announced seven dividends and one bonus issue for investors in the last six years. However, only one dividend has been declared since the issuance of bonus shares. The stock traded ex-date for bonus on August 27, 2025 and the company announced a final dividend of Rs 13 per share with a record date of June 19, 2026.

HDFC Bank turned ex-date for dividend five times before that. The lender announced a dividend of Rs 6.5 per share (ex date: June 30, 2021); Rs 15.5 per share (ex date: 13 May, 2022), Rs 19 per share (ex date: 16 May, 2023), Rs 19.50 per share (ex date: May 10, 2025) and Rs 22 per shares (ex date: June 27, 2025).  

Ashika's take on HDFC Bank Ashika noted that the announcement removes uncertainty over the current MD & CEO’s tenure beyond October 2026. However, investors are likely to remain cautious until a successor is identified. The incoming MD & CEO’s profile, track record and strategic vision will be closely watched, as these could play a key role in rebuilding investor confidence. It currently has a 'buy' rating with a target price of Rs 959.

HDFC Bank succession plan: What lies ahead? According to market players,  an external appointment to replace Jagdishan could help reset investor perception, strengthen governance and bring a different perspective to the bank’s post-merger strategy. However, the key trade-off would be higher execution and cultural-transition risk versus an internal candidate such as Bharucha.

With the Board delaying an announcement on Sashi’s reappointment amid the governance reviews, expectations had increasingly shifted towards Sashi not getting a third term, said Rohan Mandora, Associate Director of Equity Research at Equirus Securities. Given the Board’s intention to fast-track the process, we believe the bank may seek to ensure a relatively seamless transition.

HDFC Bank may undergo a meaningful leadership and governance reset under a new CEO & MD. While the transition could create near-term execution uncertainty, a credible successor could help rebuild stakeholder confidence and provide a fresh start following the recent governance overhang, he said.

Kaizad Bharucha remains the most obvious internal candidate, currently serving as deputy MD and among the bank’s most senior executives. However, we assign a higher probability to an external candidate, given the recent governance overhang, senior-management churn and the need for a fresh strategic direction, said Mandora from Equirus, which has a 'Long' rating and a target price of Rs 1,055 on it.