Archive · 28 Sep 2026
HDFC Bank CEO change could unlock 20% upside, Jefferies says
HDFC Bank may soon get a new chief executive officer.
Investors are watching who receives the job and how the Reserve Bank of India responds.
Jefferies believes the leadership change could help the bank improve its performance.
It kept a Buy recommendation and expects the shares to rise by about 20% to Rs 880.
The bank’s retail deposit growth has been slower than that of some large competitors.
However, it recently collected $11-12 billion through special foreign-currency deposits.
The new CEO may review the bank’s senior team and business structure.
Jefferies also wants the bank to improve fee income and choose its future loan segments carefully.
Jefferies retained its Buy rating on HDFC Bank with a target price of Rs 880 per share, implying about 20% upside.
The brokerage expects HDFC Bank to announce its next CEO soon, potentially reducing uncertainty around the leadership transition.
Retail deposit growth lagged peers, with HDFC Bank’s LCR retail deposit growth at 12%, versus 15% for ICICI Bank and 14% for State Bank of India.
HDFC Bank mobilised $11-12 billion in FCNR-B deposits over two months, which could help refinance higher-cost deposits and borrowings.
Jefferies said stronger execution, changes to the senior team and a better loan mix could support earnings growth and valuation rerating.
- Who
- HDFC Bank, its prospective next CEO, Jefferies and the Reserve Bank of India are central to the report.
- What
- HDFC Bank is nearing a CEO appointment, while Jefferies assesses whether the change can improve growth, earnings and valuation.
- When
- The appointment is expected soon; Jefferies compared valuations after March 18, 2026.
- Where
- The developments concern HDFC Bank and its banking operations in India.
- Why
- Investors are assessing whether new leadership, stronger execution, deposit improvements and a better loan mix can support a rerating.
- Brokerage view
- Jefferies retained its Buy rating on HDFC Bank.
- Share target
- Rs 880 per share, implying around 20% upside.
- ADR target
- $28.
- Retail deposit growth
- HDFC Bank’s LCR retail deposit growth was 12%, compared with 15% for ICICI Bank and 14% for State Bank of India.
- FCNR-B deposits
- HDFC Bank mobilised $11-12 billion in two months.
- Fee income growth
- Fee growth on a constant exchange basis was 8% and 11% year-on-year in the past two quarters.
- Valuation basis
- Jefferies maintained its recommendation using 1.6 times September 2028 price-to-book value.