The board of HDFC Bank is likely to approve the reappointment of Sashidhar Jagdishan as Managing Director and CEO for a third term, citing satisfactory performance and sound leadership decisions, according to sources.
Sources said Jagdishan meets the Reserve Bank of India's ‘fit and proper' criteria as well as other regulatory requirements. The board is expected to take up the matter at its next meeting on April 18, when it will consider and approve the bank's Q4FY26 results. Jagdishan's current tenure ends in October 2026.
HDFC Bank did not immediately respond to NDTV Profit's queries sent via email and phone for this report.
To be sure, Jagdishan earlier this month told NDTV Profit that he is keen to continue as the bank's chief but will allow the due process of appointment to take its course.
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Atanu Chakraborty Resignation And Aftermath
The sudden resignation of HDFC Bank's former chairman Atanu Chakraborty on March 18 had triggered speculation about a possible power tussle within the bank's management. The bank's market capitalisation fell sharply after Chakraborty cited “incongruence” between his values and certain internal practices at the lender as the reason for stepping down.
A few senior employees of HDFC Bank were accused of mis-selling Credit Suisse's AT-1 bonds, which were eventually written off. The bank subsequently dismissed three senior employees for engaging in the practice.
According to people aware of the development, the bank took action against the three employees while Chakraborty was still serving as chairman.
“HDFC Bank has over 10,000 branches and more than two lakh employees. How does the management ensure that every single individual does not commit foul practices? Once we spot an irregularity, we take action. It does not matter whether we do so within one month or 15 months,” a source said.
“HDB Financial needed capital, and if we had raised money via private placement with an investor, we would not have met the RBI's upper-layer regulatory guidelines, which mandated listing the NBFC by September 2025. The few words used in Mr Chakraborty's resignation letter were not warranted,” the source added.
HDFC Bank shares ended 3% lower at Rs 732 apiece on the BSE on Monday.
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