ICICI Securities maintains buy on HDFC Bank at ₹920
ICICI Securities just updated its target price for HDFC Bank to ₹920, sticking with a buy recommendation.
This change follows the news that Mr. Sashidhar Jagdishan, MD&CEO, of HDFC Bank won't continue after his current term.
The bank has recently dealt with regulatory issues and the unexpected exit of former chairman over ethics concerns.
HDFC Bank succession uncertainty, buy stands
With Jagdishan stepping down, there's uncertainty about who will lead next: internal options are limited, and picking someone from outside could bring risks like culture clashes or leadership instability.
The incoming MD&CEO may need to restructure the bank's balance sheet, which could slow growth in the short term.
Still, ICICI Securities expects steady loan growth (13-14% CAGR) and returns (RoE around 14%) through FY26-28, so their buy call stands thanks to attractive valuations.