Why HDFC Bank Share Price Is Down Today

HDFC Bank‘s share price extended losses for the fourth straight session on Tuesday as the lender is set to see a senior management exit.

What Happened: The slump today comes as seasoned banker Arvind Kapil is set to leave the lender. He has been appointed as the new managing director and CEO of Poonawalla Fincorp, according to an exchange filing. Kapil’s appointment, effective from June 24, is for a tenure of five years.

Currently serving as HDFC Bank’s Group Head overseeing mortgage banking business, Kapil is renowned for his role in managing various loan portfolios including home loans, loans against property, and HDFC Sales Pvt. He has been instrumental in leading the retail lending franchise of HDFC Bank, covering areas such as unsecured loans, auto loans, two-wheeler loans, retail working capital loans, and gold loans.

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Analyst Reactions: Analysts at Jefferies maintained their ‘buy’ call on the stock with a target price of ₹1,800 per share, stating that Kapil’s resignation could have a slightly negative impact due to his seniority.

Nomura analysts have maintained a ‘neutral’ stance on HDFC Bank post this development, setting a target price at ₹1,625 per share. They do not anticipate any significant impact on the bank’s operations due to the change in senior management. The brokerage also highlighted that the private lender has good depth in its senior management.

Price Action: HDFC Bank’s share price was down 0.35% to trade at ₹1,441 as the markets opened on Tuesday.

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