HDFC CEO's pushback on overhaul fueled exit

HDFC Bank's CEO Sashidhar Jagdishan announced his decision to step down at a hastily convened board meeting, following Chairman Rajiv Kumar's insistence on significant changes at India's most valuable bank. Kumar, who took over just two months ago, pushed for faster loan growth, increased technological investment, addressing legacy issues, and replacing some senior executives.

Jagdishan, a long-serving bank employee, resisted certain proposed changes and decided to relinquish his position when his term ends next month. The bank had recently experienced turmoil, including regulatory issues and declining performance, which contributed to Jagdishan's surprise decision. The bank's board had not yet engaged an executive search firm to find a successor, leaving them scrambling to hire recruiters.

Kumar favors an outsider for the job, expressing doubts about existing internal candidates' ability to drive faster growth and sharper execution. Jagdishan, a devout Hindu, reportedly spent months praying for guidance on his future before ultimately deciding not to seek another term, citing the need for board and executive support.

His tenure was marked by regulatory and governance problems, including a recent penalty for "business overreach" and leaks that may have undermined his chances of a second term.