- HDFC Bank may appoint deputy MD Kaizad Bharucha as next MD and CEO after Jagdishan's exit: Sources
- RBI requires banks to propose 2-3 CEO candidates for approval, with Bharucha likely top choice
- Other CEO contenders include Rajiv Sabharwal, Vishaka Mulye, and Anup Bagchi
Country's largest private lender HDFC Bank may nudge its second-in-command executive, deputy MD Kaizad Bharucha, to take over the post of MD, CEO after bank chief Sashidhar Jagdishan refused to seek another term, sources say. With only two months left for Jagdishan's term to end, Bharucha is the most suitable candidate for the job, they say.
India's banking regulator Reserve Bank of India (RBI) requires banks to send at least 2-3 potential CEO candidate names for selection, in order of priority, and Bharucha may take the top spot in the candidates' list.
Vikram Gupta, partner, BFSI Board & Leadership at Hunt Partners, said: "Kaizad Bharucha is legally eligible to become the next MD & CEO of HDFC Bank, but his tenure would be constrained by the regulatory cap limiting a Whole-Time Director's service to 15 continuous years. Having served on the board since June 2014, Bharucha will reach this ceiling in June 2029, restricting a potential CEO term starting in October 2026 to under three years unless granted a special RBI extension."
Who is Kaizad Bharucha? A quick check.
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Other potential contenders who HDFC Bank could consider for the post are Tata Capital's Rajiv Sabharwal, Aditya Birla Capital's Vishaka Mulye and ICICI Prudential Life Insurance chief Anup Bagchi. HDFC Bank did not immediately respond to queries sent by NDTV Profit.
ALSO READ: HDFC Bank CEO Succession: Brokerages Say Smooth Transition Is Just The First Test
NDTV Profit has also learnt that after the retirement of Aditya Puri as HDFC Bank CEO in 2020, Jagdishan was the top contender for the CEO role, and the bank was also considering the candidature of Ajay Banga, current president of the World Bank Group, and Piyush Gupta, former chief of DBS Bank.
RBI norms on private bank CEO appointment:
- NRC begins the formal CEO succession process at least six months before the incumbent's term ends
- NRC mandates external search agencies to identify potential CEO candidates
- Hiring agencies submit names of potential candidates to the NRC
- NRC assesses the candidature of both external and internal candidates
- NRC shortlists and finalises candidates before sending their names to the board
- Board recommends two to three candidates to the RBI in order of preference
- RBI assesses whether the proposed candidates meet its fit-and-proper criteria
- RBI typically takes around two to three months to complete the approval process
- RBI communicates its final approval to the bank
- The bank must disclose RBI's approval to stock exchanges within 24 hours
ALSO READ: HDFC Bank Share Price Jumps Over 2% After CEO Jagdishan Announces Exit Plan
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