HDFC Bank on Saturday said CEO Sashidhar Jagdishan will retire at the end of October after deciding against seeking another term, amid uncertainty over the leadership of India’s largest private-sector lender.
"At its meeting held today, the Board of Directors took note of Mr. Sashidhar Jagdishan’s communication to not seek reappointment. Despite persuasion, Mr. Jagdishan reiterated his decision to not seek reappointment. Accordingly, he shall retire from the services of the Bank upon the close of business hours on October 26, 2026," the lender informed in a stock exchange filing.
Jagdishan took over as HDFC Bank’s MD and CEO in October 2020, succeeding Aditya Puri, who had led the lender for more than two decades. During his tenure, HDFC Bank completed its merger with parent HDFC Ltd, creating one of India’s largest financial services groups in a landmark corporate transaction.
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Following Jagdishan’s decision to retire, the private lender said its board will fast-track the selection and appointment of his successor well within time.
HDFC has faced investor scrutiny since mid-March when its former chairman Atanu Chakraborty resigned abruptly saying practices at the bank were not in line with his "personal ethics". An external legal review completed last month found no evidence to substantiate the governance concerns he raised.
Separately, an internal review of HDFC Bank's arrangements with Maharashtra State Road Development Corporation for deposits in 2017 and 2021 concluded that the conduct involved amounted to "business overreach" rather than mala fide action or personal enrichment. The board, however, issued warning letters and imposed penalties of Rs 1 lakh each on Jagdishan, chief financial officer Srinivasan Vaidyanathan, and retail assets head Arvind Vohra.
Leadership continuity assumes particular importance at large private sector banks because, unlike state-owned lenders where the government is the controlling shareholder and appoints top executives, private banks are widely held by institutions where the board and RBI play central roles in ensuring an orderly succession.
