HDFC Bank Board to Take up CEO Jagdishan's Reappointment by July

HDFC Bank's governance, nomination and remuneration committee will deliberate and recommend Sashidhar Jagdishan's candidature for reappointment as managing director and chief executive officer between July 15 and July 17, according to a report by Moneycontrol.

HDFC Bank, on June 29, appointed former finance secretary Rajiv Kumar as its part-time non-executive chairman, subject to approval from the Reserve Bank of India.

Once the RBI approves the appointment, the bank's board will convene to decide on Jagdishan's reappointment. This process is expected to conclude by July 18, when the bank is scheduled to announce its quarterly results for FY27, the report said.

The publication had reported on June 17 that the RBI asked HDFC Bank's board to expedite the appointment of a chairman, with the decision on the CEO's reappointment to follow only after a regular part-time chairman is in place.

Limited Opposition Expected

According to the report, Jagdishan's candidature for a third term is likely to face little contest. "Right now, there are no alternatives that have emerged but the final call would be taken based on the view expressed by the RBI once his application for review is submitted," a source told Moneycontrol. The nomination and remuneration committee plans to recommend a full term of three years, the source added.

The report noted that in some past cases, including at ICICI Bank, Axis Bank and IndusInd Bank, tenures recommended by bank boards were later shortened by the RBI.

Interim Leadership and Board Changes

On June 18, HDFC Bank board interim chair Keki Mistry's tenure was extended by 90 days, or until a new chairman is appointed. Mistry took on the interim role after Atanu Chakraborty's unexpected exit from the board on March 17.

HDFC Bank shares remained largely flat despite the appointment of Kumar as part-time chairman, which cleared a major governance hurdle, the report said.

On June 29, the bank also appointed former Axis Bank chief financial officer Puneet Sharma to the same role at HDFC Bank. Sharma will take charge on December 1, succeeding current CFO Srinivasan Vaidyanathan, whose term ends in October, according to the report.