HDFC Bank CEO Succession: State Bank of India (SBI) former chairman Dinesh Kumar Khara is among the names being considered for the top job at HDFC Bank, as the private sector lender begins the process
of finding a successor to managing director and CEO Sashidhar Jagdishan, according to a CNBC-TV18 report citing sources familiar with the matter.
According to the report, Khara had been approached by HDFC Bank even for the position of part-time chairman, but he had declined the same. The approach was made after Atanu Chakraborty had quit in March, after which Rajiv Kumar was appointed part-time Chairman.
Khara, however, has denied having any knowledge of the development. Responding to CNBC-TV18, he said, “I have no clue about it and genuinely have no comment on the subject.”
Khara led SBI from October 2020 to August 2024.
Khara Was Also Approached For Chairman Role
According to CNBC-TV18, HDFC Bank had earlier approached Khara for the position of part-time chairman after Atanu Chakraborty stepped down in March. Khara is said to have declined the offer. Rajiv Kumar was subsequently appointed as the bank’s part-time chairman.
The latest development comes after HDFC Bank announced over the weekend that Jagdishan would not seek another term as MD and CEO after his current tenure ends on October 26, 2026.
Internal And External Candidates In The Race
HDFC Bank is considering both internal and external candidates for the top management position. Among the internal names being discussed is Deputy Managing Director Kaizad Bharucha.
However, Bharucha’s potential candidacy could face a limitation because his 15-year tenure as a whole-time director on the bank’s board ends in 2029. This could leave him with a relatively short period at the helm if he is appointed, according to the CNBC-TV18 report.
The bank’s search could therefore include experienced senior bankers from outside HDFC Bank, with SBI executives emerging as possible contenders because of their experience in managing a large banking franchise.
Brokerages Divided Over CEO Change
The leadership transition has received a mixed response from analysts tracking HDFC Bank. Macquarie and Bernstein have flagged the potential for increased uncertainty around the CEO succession at a time when investor confidence in the stock is already weak. On the other hand, Nomura believes the appointment of a suitable successor could act as a meaningful trigger for a re-rating of the stock.
JPMorgan has taken a relatively constructive view, arguing that the scope for further de-rating may be limited because HDFC Bank’s current valuation already reflects several of the potential challenges facing the lender.
HDFC Bank Shares Under Pressure
Shares of HDFC Bank closed 1.2% higher at Rs 719.50 on Friday. Despite the rise, the stock has declined around 27% so far in 2026. If the decline holds through the year, it would mark HDFC Bank’s first calendar year of negative returns in more than a decade.
The appointment of Jagdishan’s successor is therefore likely to remain a key focus for investors, with the eventual choice expected to influence sentiment around the bank’s growth strategy, asset quality and valuation.
