Chairman Rajiv Kumar Leads Search For Next HDFC Bank CEO

HDFC Bank has initiated the process of finding a successor to Managing Director and CEO Sashidhar Jagdishan, with Chairman Rajiv Kumar taking an active role in identifying potential candidates. Moneycontrol reported.

Kumar, along with members of the board’s Nomination and Remuneration Committee (NRC), is understood to have prepared a list comprising both internal executives and senior bankers from outside the bank.

The process began shortly after Jagdishan informed the board that he would not seek another term. His current tenure is scheduled to end on October 26.

Internal Candidate Kaizad Bharucha in Focus

Among HDFC Bank's senior executives, Deputy Managing Director Kaizad Bharucha is widely viewed as a leading contender. Bharucha has been associated with HDFC Bank since 1995 and joined its board as an executive director in 2014.

However, his potential appointment comes with a regulatory consideration. Executive bank directors are subject to a maximum 15-year tenure on the board, which could limit Bharucha's tenure as CEO to around three years unless the rules change.

The bank has also indicated that it has considerable leadership depth beyond Bharucha, leaving open the possibility of another internal candidate.

External Bankers Also Being Considered

The search is not restricted to HDFC Bank executives. Members of the NRC have reportedly approached bankers from private-sector and public-sector institutions, making the contest between internal and external candidates relatively open.

Names reportedly being considered include SBI's Ashwini Tewari, Tata Capital's Rajiv Sabharwal, ICICI Bank's Rakesh Jha, ICICI Prudential Life's Anup Bagchi and Aditya Birla Capital's Vishaka Mulye.

Former SBI chairman Dinesh Khara has also emerged as a potential candidate, although he could alternatively be considered for a board position.

According to the report, governance-related developments at HDFC Bank could strengthen the case for an external appointment. An outsider could bring a fresh perspective while adapting relatively quickly to the bank's established processes.

The board has committed to completing the succession process well before Jagdishan's October 26 departure, although an interim CEO arrangement has not been ruled out.