Mumbai: Nirmal Bang Institutional Equities on Friday expressed confidence in HDFC Bank interim chairman Keki Mistry’s appointment, stating that the Reserve Bank of India’s swift approval and clarifications provided during a recent conference call have allayed investor concerns about operational and governance issues.
The brokerage remained positive on HDFC Bank Ltd, citing its best-in-class asset quality, strong growth potential supported by a robust capital position and expanding deposit franchise, opportunities for margin improvement, and long-term merger synergies.
“We maintain a ‘BUY’ rating on HDFC Bank with a target price of Rs 1,210, valued at 2.6 times December 2027E ABV plus subsidiary value per share of Rs 114,” Nirmal Bang said.
The appointment of HDFC Bank interim chairman Keki Mistry comes after Atanu Chakraborty’s resignation, which cited differences in personal values and ethics. The board clarified that no material issues, operational problems, or governance lapses were identified in discussions with the outgoing chairman. Nirmal Bang noted that management characterized the resignation as stemming from individual relationship issues rather than institutional concerns.
HDFC Bank Interim Chairman : Management Denies Power Struggle, Interim Chairman Reassures Integrity
Addressing market rumors, the bank management explicitly denied any power struggle at the board or employee level, highlighting the cohesive nature of the leadership team. HDFC Bank interim chairman Keki Mistry, 71, also emphasized that he would not have accepted the interim role if there were doubts about the bank’s integrity or governance standards.
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The RBI’s rapid approval of the HDFC Bank interim chairman appointment was seen by the lender as a strong signal of regulatory confidence in the bank’s operations. Additionally, the re-appointment of Kaizad Bharucha as deputy Managing Director for another three years starting April 19, 2026, was highlighted as a sign of management stability. The board also expressed full confidence in MD & CEO Shashidhar Jagdishan, whose reappointment is due in seven months.
Nirmal Bang reaffirmed that HDFC Bank’s risk management, audit processes, and internal controls remain robust. The bank continues to focus on accelerating growth in the upcoming quarter and realizing the full potential of market synergies following its recent large-scale merger.
“The appointment of HDFC Bank interim chairman Keki Mistry, combined with strong board confidence, reinforces stability and long-term growth potential for investors,” Nirmal Bang concluded.