HDFC Bank CEO Sashidhar Jagdishan to step down in October, bank begins successor search
HDFC Bank chief executive Sashidhar Jagdishan will step down from his post when his current term ends on October 26, 2026, after deciding not to seek another term, the bank said on Saturday.
Jagdishan was widely expected to seek a third term as the head of India’s largest private-sector bank. However, the bank’s board said it will now speed up the process of finding his successor.
“Mr Jagdishan reiterated his decision to not seek reappointment. Accordingly, he shall retire from the services of the bank upon the close of business hours on October 26, 2026,” HDFC Bank said in a filing with the stock exchanges.
Exit follows governance concerns
Jagdishan’s decision comes a few months after Atanu Chakraborty stepped down as HDFC Bank’s part-time chairman in March, citing ethical differences.
Chakraborty’s resignation had led to concerns among investors about the bank’s internal governance. Following his exit, HDFC Bank ordered an external legal review into the issues raised by him.
The review, which was completed in June, found no evidence supporting the concerns raised by Chakraborty.
The bank later appointed former bureaucrat Rajiv Kumar as its chairman in July.
Jagdishan was also among three senior executives who faced action from the bank’s board in July. The action followed the board’s conclusion that employees involved in setting deposit rates for a state government agency had gone beyond accepted business practices.
HDFC Bank reports 5% rise in Q1 profit
The development comes shortly after HDFC Bank reported a 5 per cent rise in standalone net profit for the April-June quarter, supported by stronger consumer lending and lower provisions for possible bad loans.
The bank reported a net profit of Rs 19,060 crore for the quarter, compared with Rs 18,150 crore in the same period last year. Analysts had estimated the profit at around Rs 19,190 crore.
Total loans grew 15.4 per cent year-on-year, with housing loans, personal loans and other retail lending contributing to the growth. Deposits increased 13.3 per cent during the period.
Net Interest Income (NII), which represents the difference between the interest earned on loans and the interest paid to depositors, increased 6.7 per cent to Rs 33,530 crore.
However, the bank’s lending margin remained at 3.26 per cent. This was lower than the 4 per cent level recorded before HDFC Bank merged with its parent company, HDFC, in 2023.
Investors have continued to track the margin closely to assess whether the Rs 3.3 lakh crore merger is generating the expected benefits.
Gross non-performing assets (NPAs) rose marginally to 1.17 per cent of total loans from 1.15 per cent in the previous quarter, indicating a slight increase in loans where borrowers had stopped making repayments.
At the same time, provisions and contingencies fell sharply by 78 per cent year-on-year to Rs 3,060 crore. These provisions are funds set aside by the bank to cover potential losses from bad loans and other risks.
Income from fees, government bonds and other market-related operations declined 41 per cent from the previous quarter to Rs 12,821 crore.
The decline was partly linked to higher bond yields and restrictions imposed by the Reserve Bank of India on certain foreign-exchange transactions.