New Delhi, Aug. 31 -- Foreign and Indian investors are expected to take the leadership transition at HDFC Bank Ltd in stride, with the lender's American Depositary Receipt (ADR) rising sharply ahead of the disclosure and domestic shares recovering from a 52-week low on Friday.

HDFC Bank's ADR rose 2.76% to $23.08 apiece on Friday, according to financial news website MarketWatch, a day before the lender informed stock exchanges that managing director and chief executive Sashidhar Jagdishan would step down when his second term ends on 26 October.

An ADR allows global investors to invest in a foreign company without buying its stock in the home country. A US bank purchases the company's shares in, say, India, and issues receipts against th...