HDFC Bank Ltd announced on Saturday that its Chief Executive Officer, Sashidhar Jagdishan, has decided not to seek reappointment upon the conclusion of his current term on October 26th of this year.
"Despite persuasion, Mr. Sashidhar Jagdishan reiterated his decision to not seek reappointment…," stated India's largest private lender in an exchange filing. "The board deeply appreciated his commitment, leadership, contribution to growth, stability of the bank and his role in successful completion of one of the largest mergers in corporate India."
The bank has now accelerated its process to identify his successor.
This development makes HDFC Bank the latest private-sector lender to experience a leadership transition. In June, Kotak Mahindra Bank CEO Ashok Vaswani announced his decision to step down at the end of his current term on December 31, 2026. As reported by Mint on June 27, over the past two years, five other private-sector banks—Yes Bank, IndusInd Bank, Bandhan Bank, Karnataka Bank, and City Union Bank—have undergone leadership changes.
A CEO Exit Amidst Crisis at HDFC Bank
Five months prior, HDFC Bank faced a crisis following the resignation of then Chairman Atanu Chakraborty. His resignation letter, dated March 17, cited "certain happenings and practices within the bank" that were "not in congruence" with his personal values and ethics. The lender had subsequently reiterated that Chakraborty "did not mention any happenings and practices which were not in congruence with his personal values and ethics." He did not provide further details.
This led to an external review by two law firms, which ultimately provided a clean chit to the bank. Chakraborty later described the review as a "superfluous exercise." The law firm's review and the pending appointment of the chairman had been delaying the board's decision regarding Jagdishan's tenure.
In May, The Indian Express reported that HDFC Bank had made payments of ₹45 crore to the Maharashtra State Road Development Corporation, which were routed as marketing expenses to effectively offer higher returns on deposits. The bank at the time stated that it strongly rejects any assumptions of wrongdoing or culpability based on selective material.
In July, HDFC Bank's Deputy Managing Director Kaizad M. Bharucha stated that the bank’s governance, nomination and remuneration committee and the board were fully aware of the matter, and that the CEO appointment process was ongoing.
30 Years at HDFC Bank
Jagdishan, 61, joined HDFC Bank in 1996 as a manager in the finance division and later became the finance head in 1999. He was subsequently appointed as the chief financial officer of HDFC Bank in 2008.
With only two months remaining in his tenure, there was growing uncertainty about whether Jagdishan would receive a third term. While a shorter extension than the usual three-year term was anticipated, his departure appears to be the outcome.
On August 27, Suresh Ganapathy, managing director and head of financial services research at Macquarie Capital, told Mint that two main options were available given the limited time. "Either the MD & CEO gets a tenure extension of say around six months or a full three-year tenure. In the case of the former, we believe, the messaging here is that the board is looking for candidates apart from the current CEO and wants time from Reserve Bank of India (RBI) to recommend a new list," Ganapathy said.
Bank boards typically approve CEO reappointments and seek approval from the RBI approximately six months in advance. For instance, in January 2026, ICICI Bank Ltd.’s board approved the reappointment of Sandeep Bakhshi as CEO for another two years. Bakhshi’s current term ends in October, and the RBI approved his reappointment in May. Meanwhile, the HDFC Bank board had approved Jagdishan’s current term in March 2023, a full seven months before the deadline.
