HDFC Bank CEO Jagdishan to step down, decides not to seek reappointment

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Sashidhar Jagdishan had taken over as the bank’s MD & CEO after the retirement of Aditya Puri. File photo: HDFC Bank website

HDFC Bank’s Sashidhar Jagdishan has conveyed his decision not to seek his re-appointment as the managing director & chief executive officer (MD&CEO) of the Bank, the largest private sector bank, said in an exchange filing.

“At its meeting held today, the Board of Directors took note of Mr. Sashidhar Jagdishan’s communication not to 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 bank said.

“The Board deeply appreciated his commitment, leadership, contribution to the growth and stability of the Bank and his role in the successful completion of one of the largest mergers in corporate India. The Board conveyed its best wishes to him in his future endeavors,” it added.

The bank said it’s Board has decided to fast-track the process for selection and appointment of his successor well within time.

Mr Jagdishan had taken over as the bank’s MD & CEO after the retirement of Aditya Puri.

Sashi, as he’s known to his friends and colleagues, joined HDFC Bank in 1996 and has played a critical role in its growth ever since.

Recently, he had come under criticism for the bank’s stock’s underperformance in the market and had faced allegations of violating corporate governance norms, which the bank had denied. In the last week, the stock had fallen to 5 years low according to brokers.

Earlier this year, the previous part-time chairman of the bank, Atanu Chakraborty, had resigned citing ethical grounds and following this Mr Sashidhar had come under the cloud.

Recently, he, the bank’s CFO, and two other top officials were fined by the bank for “business overreach” after running an internal review into the bank’s deposit arrangements with Maharashtra State Road Development Corporation (MSRDC) for garnering deposits in 2017 and 2021.

The Special Disciplinary Committee of Independent Directors had concluded that the conduct of the employees involved constituted business overreach rather than any mala fide action, personal enrichment, or improper motive.

The bank’s board had also communicated to the matter to Reserve Bank of India.

The RBI is also believed to have expressed discomfort with his continuation at the top post.