New Delhi, Aug. 31 -- HDFC Bank Ltd. shares rose around 2% in early trade on Monday as investors digested news that CEO Sashidhar Jagdishan will not seek reappointment, with analysts saying an expedited search for a new CEO will reduce uncertainty.

The shares, which were about 40% foreign-owned as at June-end, are down about 26% so far this year.

Jagdishan's tenure was marked by resilient asset quality and the successful stitching-together of one of corporate India's largest mergers, though returns to shareholders and profitability metrics have lagged, noted Macquarie.

Jagdishan was appointed as CEO in October 2020, and oversaw the merger of HDFC Bank with then-parent Housing Development Finance Corp. Ltd. during his nearly six-year te...