Two of India’s major private lenders are heading into leadership transitions at almost the same time.
HDFC Bank Managing Director (MD) and Chief Executive Officer (CEO) Sashidhar Jagdishan will retire on October 26, 2026. At Kotak Mahindra Bank, MD and CEO Ashok Vaswani has also decided not to seek another term after his tenure ends on December 31, 2026.
That puts succession planning at the centre of the investment debate for both stocks.
But the situations are not identical. HDFC Bank is dealing with a broader leadership reshuffle after a difficult period, while Kotak Mahindra Bank has started its succession process with several internal candidates already being considered.
How do the two succession processes compare, and with both stocks facing different earnings and valuation expectations, which bank offers the better risk-reward for investors?
Let’s take a look at what investors need to watch next –
HDFC Bank vs Kotak Bank: Two succession processes, different situations
HDFC Bank in an exchange filing said Jagdishan will not seek another term and will step down on October 26, 2026. The board has indicated that it will fast-track the process of finding his successor.
Several names are being discussed. According to multiple brokerage reports, Kaizad Bharucha, the current Deputy Managing Director, is seen as the key internal contender, while Jimmy Tata, the bank’s chief credit officer, is another possible internal candidate.
There will also be a search for external candidates.
The leadership changes do not stop there. Former Axis Bank Chief Financial Officer Puneet Sharma is scheduled to join HDFC Bank as CFO-designate on September 1, 2026. Former Finance Secretary and former Chief Election Commissioner Rajiv Kumar has also recently taken over as chairman following Atanu Chakraborty’s exit.
Motilal Oswal report noted that “Kaizad Bharucha, Deputy MD, remains the key internal contender to succeed Mr. Jagdishan. Another potential internal candidate is Mr. Jimmy Tata, chief credit officer, who has been associated with the bank for more than 30 years.”
Kotak Mahindra Bank is also preparing for a CEO change. Vaswani said on June 27, 2026 that he would not seek reappointment after his term ends on December 31, 2026, citing personal reasons.
The bank has started the succession process, although no formal shortlist has been announced.
Kotak Mahindra Bank: Possible successors
Nomura, in its report dated June 28, 2026, examined the likely internal candidates at Kotak Mahindra Bank.
The bank currently has three whole-time directors – Anup Kumar Saha, Paritosh Kashyap and Jaideep Hansraj.
Nomura believes Saha is the strongest internal candidate. It noted, “Among the internal candidates, Saha appears the strongest fit.”
Saha joined Kotak as a whole-time director in March 2026 and oversees consumer banking, marketing and data analytics.
Nomura also said, “External appointment remains possible but appears less likely.”
HDFC Bank vs Kotak Bank: What do brokerages see?
The brokerage view on HDFC Bank remains positive despite the leadership uncertainty.
Jefferies, in its report, has a ‘Buy’ rating and a Rs 880 target price. This implies around 22% upside from the reference price.
It said, “Uncertainty can drag EPS & vals, but after 27% fall so far this year at 1.5x PB, risk-reward is balanced.”
Jefferies has lowered its target from Rs 1,050 to Rs 880 and expects the transition to affect deposit mobilisation and fee income in the near term.
Motilal Oswal is more constructive, with a Rs 925 target price and a ‘Buy’ rating. This translates to an upside of 28% from the current market price.
The brokerage expects earnings to improve from FY28 onward and estimates return on assets (RoA) to remain around 1.8%.
It said, “We estimate HDFC Bank to deliver an improved earnings performance from FY28 onward.”
For Kotak Mahindra Bank, Nomura, in its report dated July 20, 2026, retained a ‘Buy’ rating with a Rs 460 target price, implying around 18% upside.
The brokerage values the core bank at 1.8 times March 2028 forecast book value per share and assigns separate value to subsidiaries.
HDFC Bank vs Kotak Bank: Stock performance
HDFC Bank has gained more than 2% in early trade on Monday, but the broader trend remains weak. The stock has fallen around 16% in six months, 23% over one year and 26% so far in 2026.
Kotak Mahindra Bank shares are up around 2% in the latest session, while the stock has gained about 7% over one year. So far in 2026, the share price of the private lender is down 4%.
HDFC Bank vs Kotak Bank: What investors need to watch?
For HDFC Bank, the key question is who succeeds Jagdishan and whether the leadership transition affects deposit mobilisation, fee income and growth momentum. The key issue is how quickly the board can settle on a successor and whether the leadership transition affects deposits, fees and growth momentum.
For Kotak, the focus is more on whether the bank can use its internal leadership bench to ensure a smooth transition before December 31.
The timeline for regulatory approval will also matter. In its report dated July 28, 2026, Jefferies analysed chief executive appointments at nine private banks over seven years. The brokerage noted, “We analyse such appointments at 9 Private banks over 7yrs. We note that board approvals come 8mths ahead of term and RBI confirms within next 6mths.”
Jefferies also pointed out that the process has become faster in some recent cases, saying, “Of late, RBI has confirmed sooner, within 35-90 days, at IIB, Federal & Kotak.”
It added, “In most cases, RBI granted CEOs a term of 3 years, in line with board’s request, with some exceptions.”
Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices, and recommendations expressed are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.