During early trading, it surged nearly 3 percent to reach Rs 730.30.

The bank has submitted the names of two candidates to the Reserve Bank of India (RBI) for the position of CEO. With this, the process of finding a successor to Shashidhar Jagdishan has formally begun. Jagdishan is set to retire at the end of this year.

HDFC Bank sends 2 names to RBI for next MD & CEO

HDFC Bank has submitted the names of two candidates to the Reserve Bank of India (RBI) for appointment as its next Managing Director and Chief Executive Officer (MD & CEO), setting the succession process in motion ahead of the end of Sashidhar Jagdishan's current term.

The bank's board approved the two candidates in order of preference at its meeting on September 12, along with their proposed remuneration, and submitted the proposal to the RBI for approval. The names of the two candidates have not been disclosed. The next MD & CEO will be appointed for a three-year term, subject to RBI approval. Jagdishan's current term is scheduled to end on October 26, 2026.

How High Can the Stock Rise?

The bank's shares had faced heavy selling pressure due to uncertainty surrounding its governance. Nomura believes that the potential appointment of Kaizad Bharucha would ensure continuity in the bank's operations. His understanding of the bank and its business would also make the transition smoother.

The international brokerage has maintained its 'Buy' rating on the stock and set a target price of ₹950 per share. This represents an upside of 34% from its previous closing price.

Which Companies See Spike Today:

Among the 30 Sensex firms, HCL Tech jumped 6.5 per cent, Tech Mahindra climbed 5.6 per cent, Tata Consultancy Services surged 5.10 per cent and Infosys edged higher by 4.83 per cent. HDFC Bank, ITC, Hindustan Unilever and Tata Steel were also among the winners.

Bharat Electronics, Bajaj Finserv, NTPC and Titan were among the laggards.

"A positive for the Indian market is that there is clarity emerging on the choice of HDFC Bank MD and CEO. A quick acceptance of the name of the successor by the RBI can influence the benchmark index significantly," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.