HDFC Bank sends RBI two names for next MD & CEO

Mumbai, Sep 12 (PTI) A fortnight after incumbent Sashidhar Jagdishan opted out of the race to continue as HDFC Bank’s managing director and chief executive, the largest private sector lender on Saturday sent names of two candidates as prospective successors to the Reserve Bank.

HDFC Bank also announced changes to its board, increasing the number of wholetime directors to four from the present three, and also appointing chief credit officer Jimmy Tata as a wholetime director, as per an exchange notification.

Jagdishan opted out of reappointment on August 29, ending a nearly six-month-long suspense on his fate. Its non-executive chairman Atanu Chakraborty’s surprise resignation in March, flagging issues on values and ethics, was followed by some

specific instances showing shortcomings in governance being highlighted.

As per the bank’s earlier notification, Jagdishan will retire on October 26, when his term as MD and CEO ends. Some voices say this leaves the bank with a very narrow window to select a successor and for the candidate to get a handle on the position before transitioning to the post.

The bank has sent names of two candidates in the order of preference and also remuneration to be paid to each of them, as per the exchange notification.

The Reserve Bank generally approves the selected name to head a lender after going through the list of names and assessing the names under its ‘fit and proper’ criteria. HDFC Bank has been classified as a systematically important bank.

HDFC Bank said the board approved the two names as per the recommendations of its governance, nomination and remuneration committee on Saturday.

The appointment of the MD and CEO will be for three years, the bank said.

Tata, a veteran who joined the bank in 1994, has been appointed as a whole-time director on the board and designated as an executive director for a period of three years, the bank said.

V Srinivasa Rangan has been reappointed for a year after his current term ends on November 23.

It has also decided to create an additional post of wholetime director on the board to four in addition to the MD and CEO in order to have a larger pipeline for succession planning. At present, there are only three whole-time directors, including deputy managing director Kaizad Bharucha, Rangan and Tata.

The fourth position will be filled in consultation with the new MD and CEO after the selected candidate takes charge. PTI AA MR