Sources told CNBC-TV18 that the country’s largest private sector lender has shortlisted three candidates for the chairman’s role, including a former Reserve Bank of India Deputy Governor. The appointment is being closely watched by investors and regulators, at a time when the bank is looking to move past months of governance-related scrutiny.
The chairman selection has assumed added significance as it is closely linked to the future of Managing Director and Chief Executive Officer Sashidhar Jagdishan. Sources indicated that the recommendation for extending Jagdishan’s tenure will be taken up only after the chairman selection process is completed.
Jagdishan’s current term as CEO ends in October 2026. Under RBI guidelines, banks are expected to initiate the process for leadership reappointments six months before the incumbent’s term expires. CNBC-TV18 has learnt that the RBI has taken note of delays in both the chairman and CEO succession processes and has asked the bank to expedite submission of recommendations.ALSO READ: Exclusive | HDFC Bank has shortlisted 5 people for Chairperson’s post
The succession exercise comes against the backdrop of former chairman Atanu Chakraborty’s abrupt resignation in March. Chakraborty had cited certain practices within the bank that he believed were not in line with his personal values and ethics, triggering concerns among investors and leading to a sharp decline in the bank’s share price.
Following his resignation, the RBI approved veteran banker and HDFC Group stalwart Keki Mistry as interim chairman. Last week, the regulator granted a further three-month extension to Mistry’s tenure until September 18, 2026, or until a permanent chairman is appointed.
To address concerns arising from Chakraborty’s exit, the bank commissioned an independent legal review by external law firms. Sources now indicate that the bank expects to receive the findings of that review shortly. The report is being keenly awaited as it could help provide closure on governance issues raised by the former chairman and potentially clear the way for progress on CEO succession. Recent reports have suggested that the review has not found any major governance lapses at the bank, although the final report is yet to be formally placed before the board.
Notably, the RBI had moved quickly to reassure markets following Chakraborty’s departure, stating that it had no material concerns regarding HDFC Bank’s governance, conduct, financial strength, or management.
For investors, the coming weeks could prove crucial. A decision on the chairman, clarity on Jagdishan’s future, and the conclusion of the legal review would help remove a significant leadership overhang that has persisted since March. CNBC-TV18 is awaiting comments from HDFC Bank on this story.
