Shares of India’s largest private lender HDFC Bank will be in focus heading into trade on Friday after it said that the Reserve Bank of India (RBI) has approved a three-month extension for Keki Mistry as interim part-time chairman, putting to rest speculation about an imminent appointment to the role.
In a stock exchange filing, the bank said the RBI has extended Mistry's tenure until September 18, 2026, or until a regular part-time chairman is appointed, whichever comes earlier. The approval was granted following the bank's application seeking an extension after Mistry's initial appointment as interim chairman.
The clarification comes amid reports that former RBI Deputy Governor Rajeshwar Rao was among the candidates being considered for the chairman's position. NDTV had earlier reported that Rao's name was under discussion.
Mistry assumed the role after the sudden resignation of Atanu Chakraborty. The former chairman stepped down in mid-March, saying that certain practices at the country's most-valued lender were not aligned with his "personal values and ethics."
A former bureaucrat who previously served in the Department of Financial Services, Chakraborty joined HDFC Bank's board in May 2021. During his tenure, he oversaw several key developments, including the merger of HDFC Bank with mortgage lender HDFC, a transaction that created India's second-largest bank by assets.
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The appointment of a permanent part-time chairman after Mistry's tenure concludes is expected to remove a governance-related uncertainty that has weighed on investor sentiment in recent months.
HDFC Bank Q4 snapshot
The lender reported a net profit of Rs 19,221 crore for the March quarter, registering a 9% increase from Rs 17,616 crore in the same period last year.
The bank’s interest income for the quarter stood at Rs 76,610 crore, slightly lower by 1.1% compared to Rs 77,460 crore a year ago. For the full year, return on assets stood at 1.94%, higher than 1.91% reported in the previous financial year.
HDFC Bank shares are down 20% in 2026, though the stock has rebounded 6% over the past five trading sessions.
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