HDFC Bank CEO Sashidhar Jagdishan: HDFC Bank, the country’s largest private sector bank, announced in a regulatory filing on Saturday that its Managing Director and CEO, Sashidhar Jagdishan, has decided not to seek reappointment upon the conclusion of his current term on October 26.
According to the filing, Sashidhar Jagdishan had informed the bank’s board of his decision and remained firm on it despite the board’s efforts to persuade him otherwise. It further stated that the HDFC Bank board would expedite the process of selecting and appointing his successor “on time.”
The filing noted that the board highly appreciated his commitment, leadership, contributions to the bank’s growth and stability, and his role in successfully executing one of Corporate India’s largest mergers. The bank also extended its best wishes to Jagdishan for his future endeavors. Jagdishan’s decision comes amidst intense scrutiny of governance practices at HDFC Bank.
There had been speculation regarding his reappointment, particularly following the sudden resignation of Non-Executive Chairman Atanu Chakraborty in March, who had raised concerns about ethics and governance practices at the bank.
Sashidhar Jagdishan was among three senior executives fined in July
Sashidhar Jagdishan was among three senior executives fined in July following an internal review of the bank’s agreement with the Maharashtra State Road Development Corporation (MSRDC).
The bank had imposed a fine of ₹1 lakh each on Sashidhar Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan, and Arvind Vohra, the Group Head of Retail Assets. Several other incidents surfacing in recent months have also raised questions about the bank’s governance practices. Meanwhile, HDFC Bank’s shares have performed poorly in recent months.
Even more than two years after the merger with its parent company, mortgage lender HDFC, investors continue to express concern regarding its net interest margins. 61-year-old Jagdishan will retire from HDFC Bank on October 26, after having been with the bank for nearly three decades.
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