Shares of HDFC Bank edged higher for a third straight session on Tuesday as India's biggest private lender gained 1.3 per cent in intraday deals. Meanwhile, the stock has risen in seven out of the eight trading sessions, adding 9 per cent during this period and ₹93,521 crore to market capitalisation (m-cap).

On NSE, HDFC Bank shares rose to as much as ₹749.30, and its market capitalisation was at ₹11.52 trillion, close to the day's high, compared with ₹10.59 trillion as of the September 9 close. 

The banking counter has been in focus lately after the lender said it has shortlisted two candidates for the position of managing director (MD) and chief executive officer (CEO), based on the recommendations of its Governance, Nomination and Remuneration Committee. HDFC Bank, on September 12, said that the names have also been submitted in order of preference, along with the proposed remuneration for a three-year term, to the Reserve Bank of India (RBI) for approval.

The bank, however, did not disclose the names of the two candidates proposed for the top job. Several media reports today reported that Anup Bagchi has been shortlisted for the role. He has been the managing director and CEO of ICICI Prudential Life Insurance for the past three years.

HDFC Bank is looking for a candidate to head its operations after incumbent MD & CEO Sashidhar Jagdishan informed the board late last month that he would not seek reappointment after his second term ends in October. Jagdishan, 61, took charge in October 2020, succeeding Aditya Puri, and was reappointed in 2023. His current term ends on October 26. READ MORE

Gaurang Shah of Geojit Financial said that he has been positive on HDFC Bank, even when the news flow was negative. 

"HDFC Bank was underperforming because of the resignation of higher-designated individuals, with the latest being the CEO. Two names have been submitted to the RBI, and possibly by 26th of October, we will have clarity about who is heading the CEO post and driving the business in the future. In terms of valuation, it is one of the cheapest stocks in the banking and finance space," Shah said. 

HDFC Bank has been among the worst-performing Nifty 50 stocks this year, having lost 25.15 per cent on a year-to-date basis. 

Harish Jujarey - AVP equity research at Prithvi Finmart, said that after finding support around its 2024 low of ₹680, HDFC Bank has shown a decent recovery and is up around 4.50 per cent this month. On the technical front, the stock has moved above its 50-day moving average, indicating a slight improvement in the short-to-medium-term trend.

The ongoing recovery could extend towards ₹770, and a sustained move above this level may open the way for ₹820, while on the downside, 710 has now become the immediate support, followed by 685, which remains a crucial support level, Jujarey opined.

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