HDFC Bank shares traded marginally lower in early deals on June 30 after the company appointed former Chief Election Commissioner and former Finance Secretary Rajiv Kumar as its new part-time chairman, marking a key step towards resolving the governance overhang on investor sentiment.
The stock slipped 0.33 percent to Rs 796.25 in morning trade, broadly in line with the weak broader market. At around 9:30 am, the Sensex was down 0.17 percent, while the Nifty 50 declined 0.21 percent. The stock remains down about 20.7 percent over the past year, compared with a 6.2 percent decline in the Nifty 50.
Late on June 29, HDFC Bank said its board had appointed Rajiv Kumar as part-time chairman for a three-year term, effective from the date of approval by the Reserve Bank of India. The appointment is subject to RBI approval.
HDFC Bank stock rating: Jefferies bullish, eyes continuity
Following the announcement, Jefferies reiterated its 'Buy' rating on HDFC Bank with a target price of Rs 1,050 per share, implying over 31 percent upside. The brokerage said Rajiv Kumar's appointment could support Managing Director and CEO Sashidhar Jagdishan's leadership continuity. Jefferies also highlighted the appointments of Puneet Sharma as CFO and Jigar Shah to the bank's senior leadership team.
The board also approved Kumar's appointment as an additional independent director for a four-year term beginning June 30, subject to shareholders' approval. The bank will seek shareholders' approval for his appointment at its annual general meeting scheduled for August 5.
Who is HDFC Bank’s new Chairman Rajiv Kumar
Kumar is a 1984-batch IAS officer who served as Finance Secretary and Secretary in the Department of Financial Services between 2017 and 2020. He later served as the 25th Chief Election Commissioner of India and supervised the 2024 Lok Sabha elections. During his career, he has also been a member of the RBI's Central Board, the Financial Stability and Development Council, and the boards of State Bank of India and NABARD.
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The appointment comes after the Reserve Bank of India earlier this month extended Keki Mistry's tenure as interim chairman while the bank completed its search for a permanent non-executive chairman. The position had remained vacant following the resignation of former chairman Atanu Chakraborty in March.
Separately, the board approved a series of senior management appointments. Puneet Sharma has been named Chief Financial Officer-designate with effect from September 1, 2026, and will assume the role of CFO from December 1, 2026. The bank also appointed Jigar Shah as General Counsel-designate from August 20, with effect as General Counsel from October 1.
The chairman's appointment follows an independent legal review that found no evidence to support allegations made by former chairman Atanu Chakraborty in his resignation letter, a development that several brokerages said had helped ease governance concerns.
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