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Anup Bagchi will be appointed as an Additional Director of HDFC Bank effective October 2, 2026, and will take charge as MD & CEO on October 27, a day after Jagdishan completes his tenure. He will serve as MD & CEO for a three-year term through October 26, 2029, subject to shareholder approval.
Shares of HDFC Bank's American Depositary Receipts (ADRs) rose 5.5% in US trading after India's largest private lender appointed Anup Bagchi as its new Managing Director and Chief Executive Officer (MD & CEO) on Thursday, October 1.
Bagchi, who most recently led ICICI Prudential Life Insurance, will succeed Sashidhar Jagdishan as HDFC Bank's top executive.
The move comes after a difficult year for HDFC Bank shares. The stock is trading close to its 52-week low and has corrected nearly 30% so far in 2026. In the nine completed months of the year, the stock has delivered negative returns in seven months. It is also the stock's worst calendar year since 2008.
Shares of the Bank ended 1.8% higher at ₹721.20 on Thursday, ahead of the announcement.
Bagchi will be appointed as an Additional Director of HDFC Bank effective October 2, 2026, and will take charge as MD & CEO on October 27, a day after Jagdishan completes his tenure. He will serve as MD & CEO for a three-year term through October 26, 2029, subject to shareholder approval.
The Reserve Bank of India (RBI) has approved Bagchi's appointment and remuneration under Section 35B of the Banking Regulation Act, 1949.
ADRs are depositary receipts that allow US investors to gain exposure to shares of foreign companies without directly trading in the company's home market. HDFC Bank's ADRs trade on the New York Stock Exchange and represent underlying HDFC Bank shares held by a custodian in India.
Why the appointment matters
The leadership change brings an end to months of uncertainty around HDFC Bank's succession plan. Jagdishan had informed the bank's board in August that he would not seek a third term, triggering a closely watched search for his successor.
Bagchi brings more than three decades of experience across banking, capital markets, wealth management and insurance. He has previously served as Executive Director at ICICI Bank and as MD & CEO of ICICI Securities, before taking over as MD & CEO of ICICI Prudential Life in 2023.
His appointment comes at a time when HDFC Bank is working through the structural changes following its merger with HDFC Ltd, while investors remain focused on deposit mobilisation, funding costs, net interest margins and return ratios.
HDFC Bank Q1 results
HDFC Bank reported a mixed set of June-quarter (Q1FY27) earnings, with asset quality witnessing mild deterioration and key profitability metrics coming in below market expectations. Gross NPA increased to 1.17% from 1.15% in the March quarter, while Net NPA rose to 0.41% from 0.38%. In absolute terms, gross bad loans climbed to ₹35,846 crore from ₹34,061 crore, and net bad loans increased to ₹12,357 crore from ₹11,169 crore.
The lender posted net interest income (NII) of ₹33,534 crore, up 6.7% year-on-year, but below the CNBC-TV18 poll estimate of ₹34,353 crore. Net profit grew 5% to ₹19,059 crore, also missing expectations of ₹19,332 crore. Provisions rose sequentially to ₹3,059 crore from ₹2,609 crore, indicating higher buffer creation against potential stress.
A key concern was the bank's net interest margin (NIM), which fell to a record low of 3.26%, compared with 3.4% a year ago and in the March quarter.
On the positive side, business momentum remained robust. Gross advances rose 15.4% year-on-year to ₹30.61 lakh crore, while deposits increased 14.7% to ₹31.7 lakh crore, marking the strongest loan growth in five quarters. Despite a recent recovery, HDFC Bank shares remained down about 17% for the year.
