HDFC Bank CEO Jagdishan to step down after term ends in October

HDFC Bank CEO Sashidhar Jagdishan has announced he will not renew his position when his term concludes on October 26, according to the bank's regulatory filing. Despite the board's persuasion, Jagdishan made his decision and communicated it to the board. The board expressed their deep appreciation for his commitment, leadership, and role in the bank's growth and stability, including his contribution to a major merger in corporate India. They also wished Jagdishan well in his future endeavors.

This decision to step down coincides with increased scrutiny of HDFC Bank's governance practices. Jagdishan's reappointment had been a topic of speculation, particularly following the unexpected resignation of non-executive chairman Atanu Chakraborty in March, who cited ethics and governance concerns. In July, Jagdishan, along with two other senior executives, faced fines following an internal review of the bank's arrangement with the Maharashtra State Road Development Corporation (MSRDC).

The bank has also faced criticism in recent months over its underperformance, particularly regarding its net interest margins, more than two years after merging with mortgage lender parent HDFC. Jagdishan, 61, will retire from HDFC Bank after nearly three decades of service, with the bank's board planning to swiftly select and appoint his successor.