RBI nod to Keki Mistry eases fears; HDFC Bank shares buoyed by analysts
RBI nod to Keki Mistry eases fears; HDFC Bank shares buoyed by analysts
Swift RBI approval for Keki Mistry as interim chair calms investors, with Nirmal Bang sticking to Buy and others weighing long-term value.
The Reserve Bank of India cleared Keki Mistry’s appointment as interim Part-time Chairman of HDFC Bank in an exceptionally short timeframe, a move the lender framed as a strong signal of regulatory confidence in the institution.
Analysts welcomed the RBI nod and management's conference-call clarifications, which helped ease investor fears around governance and ongoing operations.
Nirmal Bang Institutional Equities reaffirmed a Buy rating with a target price of Rs 1,210, arguing that HDFC Bank's asset quality remains best in class, its capital position is robust, and its deposit franchise continues to expand, with potential for margin improvement and long-term merger synergies.
The broker noted that Atanu Chakraborty’s resignation letter cited personal values, but the board maintained there were no material governance issues. The management described any tensions as 'relationship issues' rather than institutional failures, and stressed Mistry would not have taken the role at 71 if governance were in doubt.
HDFC Bank's price action following the leadership change has been sensitive, but the management's signal of governance continuity and long-term potential supports a constructive outlook. Meanwhile, Macquarie Securities removed HDFC Bank from its marquee buy list while keeping an Outperform rating with a 12-month target around Rs 1,200, underscoring a cautious-but-optimistic stance.
Investors will watch closely how the situation evolves and whether the stock price revalues to reflect the governance narrative and the bank’s long-term potential.
