HDFC Bank shares climb nearly 9% from 52-week low; Macquarie retains 'Outperform' tag

Shares of HDFC Bank Ltd were last seen trading 0.28 per cent higher at Rs 741.10 in Wednesday's session. At this level, the stock has risen 8.67 per cent from its 52-week low of Rs 682, which it touched on September 11.

Global brokerage Macquarie has retained its 'Outperform' rating on HDFC Bank. In a recent flashnote, it said the lender's Board, according to select media reports, has forwarded two names to the Reserve Bank of India (RBI) for the bank's top post -- Kaizad Bharucha as the internal candidate and Anup Bagchi as the external candidate.

The brokerage noted that the development comes ahead of the outgoing chief's last day on October 26, 2026. It added that media reports have also suggested that the RBI is seeking feedback from the Insurance Regulatory and Development Authority of India (Irdai) on Bagchi, who currently serves as MD and CEO of ICICI Prudential Life Insurance.

Macquarie said this does not preclude Bagchi from consideration, pointing to Amitabh Chaudhary, who moved from heading an insurance company to leading Axis Bank. It added that no final decision has been made yet.

Bagchi, 55, has been MD and CEO of ICICI Prudential Life Insurance since 2023. Before that, he was an executive director at ICICI Bank from 2017, where his responsibilities included wholesale banking, transaction banking, markets and proprietary trading, according to Macquarie.

The brokerage said an external candidate appointed as CEO may have to deal with senior management exits and attrition. Its channel checks and industry feedback also indicated that there could be some attrition among long-tenured branch managers.

Macquarie identified retail growth, particularly retail unsecured loans, as one of the priorities for the new CEO. It also highlighted the need to focus on CASA deposits, enhance the bank's technology architecture, improve service culture and increase cross-selling and synergies across the group's businesses.

The brokerage flagged further sharp falls in margins, higher attrition and weaker balance-sheet growth as key risks.

Macquarie's target price for HDFC Bank stands at Rs 1,150 over a 12-month period.