Succession jitters gone with choice of Sashidhar Jagadishan as next CEO at HDFC Bank: Sharekhan

HDFC Bank has been doing the right things, making the right moves and I believe Mr Jagdishan is also going to continue in the same vein, says Lalitabh Srivastava, AVP-Research.

The markets should not have any cause of complaint. The biggest uncertainty for HDFC Bank in the near term is over with Sashidhar Jagadishan being chosen to replace Aditya Puri when his term expires.
Yes, Sashi Jagdishan is an insider and part of the management. So, in a way, this is a reiteration by the regulator of the current direction and the current stance that the bank has. The RBI approval also puts to rest the continuity question that is there when a very prominent and dominant leader moves out. I think HDFC Bank is going to maintain its pole position, its attractiveness to investors and the continuity factor should be seen as a positive for the stock.

Will there be any expectation given that he is coming from a strategic background? Will there be smooth continuity that the markets are really going to take heart from at this point?
Well there is a saying that if it is not broken, then do not try to fix it. HDFC Bank has been doing the right things, making the right moves and I believe Mr Jagdishan is also going to continue in the same vein. Obviously the new leader will have his own strategic focus and his own game plan but we can expect good things to continue for the bank.