HDFC Bank Board May Recommend Reappointment Of CEO Jagdishan By July 18: Report

HDFC Bank’s governance, nomination and remuneration committee (GNRC) is expected to deliberate on and recommend the reappointment of Sashidhar Jagdishan as Managing Director and Chief Executive Officer between July 15 and July 17, according to a report by Moneycontrol sources familiar with the matter.

This move comes after a key governance hurdle was cleared with the appointment of a new chairman. On June 29, the bank appointed former finance secretary Rajiv Kumar as part-time non-executive chairman, subject to approval from the Reserve Bank of India (RBI).

His appointment is seen as a crucial step in restoring leadership stability at the country’s largest private sector lender.

Once the RBI grants approval for the chairman’s appointment, the bank’s board is expected to meet to take a final decision on Jagdishan’s reappointment.

According to the sources cited in the Moneycontrol report, the entire process is likely to conclude by July 18, when HDFC Bank is scheduled to announce its financial results for the first quarter of FY27.

Earlier, it was reported that the RBI had advised HDFC Bank’s board to expedite the appointment of a permanent chairman, with the understanding that the CEO reappointment process would follow only after the leadership position at the top of the board was stabilised.

According to people familiar with internal discussions, Jagdishan’s continuation as CEO for a third term is likely to proceed without major hurdles.

There are currently no strong alternative candidates under consideration, though the final decision will depend on the RBI’s observations once the application is formally submitted for review.

The nomination committee is expected to propose a full three-year term extension.

However, there is precedent for the RBI modifying tenure recommendations made by bank boards, as seen in cases involving ICICI Bank, Axis Bank, and IndusInd Bank, where final approvals differed from initial proposals.

In parallel, interim chairman Keki Mistry’s tenure was recently extended by 90 days, or until a new chairman assumes office, following the sudden resignation of Atanu Chakraborty on March 17.

Market analysts believe the resolution of leadership uncertainties marks the final phase of governance-related disruptions at the bank, paving the way for a return to stable operations and stronger growth momentum going forward.