- Sashidhar Jagdishan opted out of reappointment as CEO of HDFC Bank and will retire on October 26, according to a regulatory filing.
- The HDFC Bank board will fast-track the selection and appointment of Jagdishan's successor as MD and CEO, completing the process "well within time".
- In March, former chairman Atanu Chakraborty resigned, citing concerns over ethics and governance practices at HDFC Bank.
- An external legal review found no evidence to substantiate the governance concerns raised by Chakraborty.
- The RBI stated in March that there were "no material concerns on record" regarding HDFC Bank's conduct or governance.
- On August 28, HDFC Bank shares increased after previously hitting a more than one-year low.
Sashidhar Jagdishan, 61, will retire from HDFC Bank on October 26 after nearly three decades with the lender. He opted out of reappointment despite board persuasion, as confirmed in a regulatory filing.1
The board will fast-track the selection of his successor, aiming to complete the process "well within time."
Jagdishan's decision comes amid heightened scrutiny of the bank's governance practices, particularly following the resignation of former chairman Atanu Chakraborty in March, who cited ethical concerns.3
An external review found no evidence to support Chakraborty's claims, yet the bank has faced challenges, including a fine of ₹1 lakh against Jagdishan for poor conduct in the MSRDC case.4
The bank's stock has also struggled, with investors concerned about net interest margins post-merger with HDFC.
The board expressed appreciation for Jagdishan's leadership and contributions, particularly in completing one of India's largest corporate mergers.
HDFC Bank's chairman Rajiv Kumar recently met with RBI Governor Sanjay Malhotra to discuss the board's position on Jagdishan's reappointment, reflecting ongoing uncertainty regarding the bank's leadership.
“Jagdishan, 61, will retire after nearly three decades at the lender, having led the successful merger with HDFC. The board's decision follows intense speculation after former chairman Atanu Chakraborty resigned in March citing governance concerns, though an external review found no evidence to substantiate them.”
