HDFC Bank CEO reappointment process to happen ‘well within time’: Sources | Exclusive

The process to appoint the next Managing Director and Chief Executive Officer of HDFC Bank Ltd will happen “well within time”, top sources told CNBC-TV18, a day after incumbent Sashidhar Jagdishan decided not to seek another term.

Sources said the new CEO will take over a strong bank and will have to address "certain alignment issues".

“Leadership will ensure a win-win for all,” the sources said.

The sources also said the bank is systemically sound and that outstanding issues have been settled.

HDFC Bank has potential to be among top 5-6 banks globally

According to the sources, HDFC Bank has the potential to be among the top 5-6 banks globally.

The sources, however, flagged some areas that need attention following the merger of HDFC Bank with Housing Development Finance Corporation (HDFC).

Net interest margin (NIM) and CASA have been impacted on account of the HDFC merger, they said.

Some restructuring of loans may also be needed, according to the sources.

HDFC Bank CEO transition

Jagdishan will retire from HDFC Bank at the close of business on October 26, 2026, after deciding not to seek another term as MD and CEO.

The decision was conveyed to the bank on Saturday, August 29, and the board took note of it at a meeting held the same day.

The bank said its board had sought to persuade Jagdishan to continue, but he reiterated his decision not to seek reappointment.

Jagdishan took over as HDFC Bank's MD and CEO on October 27, 2020, succeeding Aditya Puri. His tenure included the completion of the merger between HDFC Bank and HDFC.

Jagdishan joined HDFC Bank in 1996 as a manager in the finance department and later became Business Head of Finance. He was appointed CFO in 2008 and took over as MD and CEO in 2020.