HDFC Bank names 2 MD & CEO candidates for RBI approval as Sashidhar Jagdishan prepares to exit
HDFC Bank has submitted the names of two candidates to the Reserve Bank of India (RBI) for the position of Managing Director and Chief Executive Officer, according to an exchange filing.
The move comes as current MD and CEO Sashidhar Jagdishan prepares to step down at the end of his second term in October. Jagdishan, 61, is serving his second three-year term as the lender’s head and had taken charge of the CEO post in October 2020.
Under Indian banking rules, private-sector lenders require prior RBI approval for the appointment of their managing director and CEO, giving the central bank a key role in the selection and vetting of senior leadership.
On 31 August, Moody’s Ratings said HDFC Bank CEO Sashidhar Jagdishan’s exit brings a degree of “leadership transition risk”, and an orderly succession process and continuity in strategy execution will be key to sustaining stakeholder confidence and limiting any negative credit implications.
PTI quoted, Moody’s Ratings AVP Devang Rajkotia sying that while leadership changes at systemically important banks can create uncertainty around strategy execution and risk management, HDFC Bank’s strong franchise, deep senior management bench and one of the strongest financial profiles among Moody’s-rated banks in India mitigate these risks.
“An orderly succession process and continuity in strategy execution will be key to sustaining stakeholder confidence and limiting any negative credit implications,” Rajkotia said.
However, since the succession was not previously anticipated, the exit of HDFC Bank’s CEO introduces a degree of leadership transition risk.
Sashidhar Jagdishan’s tenure as HDFC Bank CEO
After nearly three decades at HDFC Bank, Sashidhar Jagdishan became CEO in October 2020, succeeding Aditya Puri, who had led the bank since its founding in 1995.
Soon after, HDFC Bank merged with mortgage lender HDFC, significantly expanding its asset book. The merger also raised concerns over business performance and compressed net interest margins, though the management said benefits would accrue over the long term.
Jagdishan’s reappointment came under scrutiny after non-executive chairman Atanu Chakraborty resigned in March, citing concerns over ethics and governance.
In July, the bank’s board found shortcomings in deposit arrangements with the Maharashtra State Road Development Corporation and fined Jagdishan and other executives ₹1 lakh each, while saying their actions were not mala fide.
The bank has also faced allegations over the mis-selling of Credit Suisse AT-1 bonds to diaspora clients through its Dubai DIFC branch. The local regulator subsequently barred the bank from onboarding new customers or conducting new business.
Jagdishan also faced allegations of graft in the Lilavati Hospitals matter, which was eventually dismissed by the Bombay High Court.
HDFC Bank reshuffles board ahead of CEO transition
Alongside the CEO succession process, HDFC Bank’s board approved the reappointment of V Srinivasa Rangan as a Whole-time Director, designated as Executive Director.
Rangan’s reappointment will run from November 23, 2026, to November 22, 2027, along with the remuneration payable to him.
The bank also approved the appointment of Jimmy Tata as a Whole-time Director, designated as Executive Director, for three years from the date of RBI approval, or from such other date or for such period as specified by the central bank.
Tata currently serves as HDFC Bank’s Chief Credit Officer.
HDFC Bank to add fourth whole-time director
HDFC Bank also plans to create one additional Whole-time Director position, taking the number of Whole-time Directors on its board to four, in addition to the Managing Director and CEO.
The bank said the additional position is intended to provide sharper synergy and oversight, including over its subsidiaries, while creating a larger pipeline for succession planning.
The new position will be filled in consultation with the incoming Managing Director and CEO after the person takes charge.
Deputy Managing Director Kaizad Bharucha is already a Whole-time Director on the bank’s board.
The proposed board changes come as HDFC Bank prepares for a leadership transition at the top, with the incoming CEO expected to work alongside an expanded executive leadership structure.
