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HDFC Bank Overtakes ICICI as Top Pick After Anup Bagchi's Appointment, Valuations Rock Bottom
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CNBC TV18•05-10-2026, 09:52
HDFC Bank Overtakes ICICI as Top Pick After Anup Bagchi's Appointment, Valuations Rock Bottom
- •HDFC Bank has replaced ICICI Bank as the preferred private banking pick following Anup Bagchi's appointment, with valuations at 1.6 times price-to-book.
- •ICICI Bank's previous appeal as a safe haven for investors has diminished due to doubts about management continuity after Bagchi's move to HDFC Bank.
- •Anup Bagchi is seen as the ideal candidate to lead HDFC Bank, with expectations that deposit growth struggles will conclude and the bank will become a "growth machine."
- •While senior-level exits may occur, the bank's process-driven nature insulates core operations, and new leadership is expected to attract fresh talent.
- •The stock is projected for an upward trajectory, with strong returns expected over a two-year horizon once global macroeconomic pressures subside.
Key Questions Answered
HDFC Bank overtook ICICI Bank as the preferred pick following the appointment of Anup Bagchi, with its valuations sitting at rock bottom and deposit growth struggles concluding after its merger.
HDFC Bank is trading at an attractive price-to-book valuation of 1.6 times, followed by Kotak Mahindra Bank at 2.2 times and ICICI Bank at 2.5 times.
Bagchi's move to HDFC Bank introduced doubt into the expected management continuity at ICICI Bank, prompting a shift in market preference toward HDFC Bank where he is viewed as an ideal candidate to lead.
