India’s HDFC Bank CEO Jagdishan to step down in October
MUMBAI: India’s largest private lender HDFC Bank said on Saturday that its Chief Executive Sashidhar Jagdishan has decided not to seek reappointment when his term ends at the end of October. Jagdishan had been expected to seek a third term, but the abrupt exit of a former chairman raised investor concerns about HDFC Bank, even though an external review concluded in June that there was no evidence…
India's largest private lender, HDFC Bank, announced on Saturday that its Chief Executive Sashidhar Jagdishan will not seek reappointment when his term ends in October. The decision, which caught investors off guard, comes in the wake of the abrupt exit of a former chairman that raised concerns about the bank's governance. Despite an external review in June finding no evidence of the governance issues raised by the former chairman, the bank's stock price has fallen 27 percent since the start of the year, partly due to the departure of the former CEO in March.
HDFC Bank's board has stated that they will expedite the process for appointing Jagdishan's successor, and Anand Dama, an executive director at a brokerage firm, believes an external candidate is more likely to be appointed. The bank's shares hit a two-year low on Thursday following the filing of a federal securities class action suit by two US law firms, which the bank maintains is without merit.
Despite the recent challenges, market experts are optimistic about the bank's prospects, noting its strong balance sheet and attractive valuation.
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