HDFC Bank Chairman Briefs RBI Governor On CEO's Reappointment: Report

HDFC Bank chairman Rajiv Kumar met Reserve Bank of India (RBI) Governor Sanjay Malhotra last week to discuss the status of MD & CEO Sashidhar Jagdishan's possible reappointment, according to a Moneycontrol report. Jagdishan's current tenure ends on October 26, 2026, a little over two months from now.

The meeting was aimed at understanding the level of consensus within the HDFC Bank board on extending Jagdishan's term, as well as the chairman's overall assessment of the bank and its board, the report said. This was the fourth formal interaction between Kumar and RBI officials since he joined the HDFC Bank board on June 30, 2026.

Board Yet To Decide

According to the report, the governor wanted to know whether the board was unanimous in favour of extending Jagdishan's tenure, or whether alternative names had been discussed since Kumar took charge. The board is yet to make any recommendations to the RBI on MD & CEO reappointment, the report said, adding that the RBI had earlier given the board time since Kumar had not formally taken over until July 15. With more than a month having passed since his appointment, the regulator is now keen that leadership-related matters at the bank are resolved soon, the report said.

Under standard practice, bank boards are expected to recommend an MD & CEO's reappointment at least six months before the incumbent's tenure ends. If a board decides to look for a new CEO instead, preferred names are typically shared with the RBI at least four months in advance. The HDFC Bank's situation was reportedly "slightly peculiar" when compared with this timeline, which is why last week's meeting between Kumar and Malhotra was significant.

Moneycontrol had earlier reported that there are four possible scenarios regarding the MD & CEO position. Jagdishan could be reappointed for a fresh three-year term or a shorter duration. Alternatively, the board could put forward the name of another internal candidate, or consider an external candidate for the role.

The report also said the RBI's discussion with Kumar touched upon other issues, including the AT-1 bonds mis-selling case being pursued by aggrieved bondholders in Bahrain.

HDFC Bank's former chairman, Atanu Chakraborty, exited the board unexpectedly in March this year. Following his departure, Keki Mistry, a non-executive board member, was appointed interim chairman. After a search lasting nearly three months, Rajiv Kumar was appointed as the bank's non-executive chairman. He initially joined the board as an additional director and was formally made chairman after receiving RBI approval on July 15.