HDFC Bank Ltd. SHARES REVERSE EARLY GAINS

HDFC Bank shares were in the red on Monday, reversing an early rally as investors appeared to pare their initial positive reaction to clarity on the bank's leadership transition and a strong Q2 business update. The stock had opened 1.67% higher but quickly reversed gains and slipped into the red. The early rally came after the Reserve Bank of India approved Anup Bagchi's appointment as HDFC Bank's new MD & CEO for a three-year term starting October 27. He will succeed Sashidhar Jagdishan, whose term ends on October 26. Bagchi, who has spent 34 years with the ICICI Group, has held leadership roles across banking, insurance, capital markets, treasury and wealth management. His appointment brings an end to uncertainty around HDFC Bank's leadership succession and comes as the lender works to improve growth, margins and investor confidence. HDFC Bank's Q2 business update showed gross advances rising 16.3%. AUM increased to Rs33.07 lakh crore. Deposits grew Rs33.27 lakh crore, while CASA deposits rose to Rs10.52 lakh crore. The strong deposit and loan growth comes ahead of Bagchi taking charge and gives the incoming leadership a stronger operating base as it looks to address HDFC Bank's CASA ratio, NIMs, credit growth and merger synergies.