India's HDFC Bank down on concerns over short-term disruption under new CEO

By Reuters News

** Shares of HDFC Bank HDBK.NS reverses course, last down 2.3% to 704.75 rupees

** HDBK shares had risen as much as 1.8% in morning trading, after India's largest private lender appointed Anup Bagchi as its next chief executive on Oct. 1

** However, the early positive Street reaction did not last amid concerns that it would time for the new CEO to settle in

** Bagchi would first need to rebuild the team, said Anand Dama, head BFSI analyst at Nuvama

** Over the longer term, Bagchi could bring fresh ideas and help ease governance concerns, Dama added

** Being an external candidate there could be some operational and management level changes which may be disruptive in the short-term, brokerage Prabhudas Lilladher said

** 38 of 40 brokerages rate the stock "buy" or higher, two "hold"; their median PT is 972 rupees - LSEG-compiled data

** YTD HDFC shares down 28.79% compared to about 13.7% fall in the Nifty 50 Index .NSEI

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