HDFC Bank Likely to Reappoint Sashidhar Jagdishan as CEO for Third Term

Sashidhar Jagdishan Reappointment: HDFC Bank CEO Stays?

Sashidhar Jagdishan’s reappointment as HDFC Bank’s MD and CEO for a third term is reportedly back on track, after external law firms found no merit in the concerns raised by former chairman Atanu Chakraborty in his resignation letter. For India’s largest private sector bank, and its 120 million customers, it signals a possible return to steadier ground after one of the stormiest governance episodes in recent memory.

HDFC Bank disclosed on June 26 that the legal review it had commissioned found Chakraborty’s allegations to be “not substantiated” by documentary evidence or witness interviews. That conclusion, in turn, has cleared the logjam that was holding up the entire CEO reappointment conversation.

What Triggered the Whole Drama

In March 2026, part-time chairman Atanu Chakraborty resigned, stating that “certain happenings and practices within the bank were not in congruence with his personal values and ethics.” The bank responded by dismissing three executives over alleged mis-selling of Credit Suisse AT-1 bonds to NRI clients via its Dubai operations.

That single resignation letter sent shockwaves through banking circles. It threw HDFC Bank’s succession plans into disarray at precisely the moment they needed to be moving forward. The affair also exposed leadership strain at a bank majority-owned by foreign institutional investors, and whose stock has fallen 5% since the $40 billion merger with parent HDFC Ltd in 2023, even as closest rival ICICI Bank rose 33% in that time and the benchmark Nifty 50 gained 24%.

The Legal Clean Chit and What It Means

The law firms examined minutes and video recordings of board and extraordinary general meetings over the last three years, to ascertain whether Chakraborty had raised governance issues and, if so, how those issues were addressed. Their conclusion: the allegations don’t hold up to scrutiny.

The RBI is understood to be of the view that there are no issues which could preclude Jagdishan’s reappointment, and if the review tallies, the regulator would have no problem supporting a third term. The central bank had separately noted after Chakraborty’s exit that there were “no material concerns on record as regards the bank’s conduct or governance.”

Timeline and Process

Jagdishan’s current term ends in October 2026. While the chairman’s appointment is likely in the next two weeks, the board should be able to take a formal decision on CEO reappointment by the end of July, according to sources aware of the development.

The Nomination and Remuneration Committee (NRC) has met five or six times and has been working with search firm Egon Zehnder to shortlist chairman candidates, though none of those appointments has materialised so far. Former RBI deputy governor Rajeshwar Rao is among five candidates shortlisted for the chairman’s post. The bank’s NRC will refer three names to the RBI for approval.

The Challenges That Remain

Board support is one thing; a third term isn’t guaranteed yet. Some analysts believe the RBI may consider other factors before clearing a third term — particularly the bank’s elevated loan-to-deposit ratio, a legacy of the 2023 merger with HDFC Ltd, which added a large mortgage book funded by borrowings rather than deposits. Normalising this credit-deposit ratio has been a key, and unfinished challenge during Jagdishan’s second term.

During an analyst call, Jagdishan himself pushed back on market speculation that he might not seek another term, saying: “I have not expressed this kind of feeling to anyone, either to my own self or to the board.” He also confirmed that Deputy MD Kaizad Bharucha has been reappointed for three years from April, calling the period ahead “one of the best in the history of the bank.”

For now, the bets are on continuity, but in Indian banking, nothing is signed until the RBI says so.