HDFC Bank may resort to interim arrangements for CEO

HDFC Bank may resort to interim arrangements for CEO

SEBI RA – Shubh Consultancy – Sunil Kotak – INH000015826 Mr Jagdishan CEO of the bank will not seek reappointment from the Board. This means that the existing CEO will serve will October 2026 only. Sources indicate Jagdishan can be asked to stay a little longer than 26 October, to give more time to the bank to identify a new CEO. In an exchange notification on Saturday, the bank, while informing that Jagdishan will not be seeking reappointment, also said he will retire from the services of the bank “upon the close of business hours on October 26, 2026.” Apart from Jagdishan, deputy managing director Kaizad Bharucha (60) and executive director V Srinivasa Rangan (66) are the other two whole-time directors on the board. Bharucha, who joined the board of the bank in 2014, is the longest-serving executive board member of HDFC Bank. According to RBI norms, a whole-time director can serve for not more than 15 years on the board of a bank. “Bharucha can still serve at least one term as CEO as he still has two and half years left as board member,” the person quoted above said. Typically, the RBI approves a three-year appointment or reappointment of a bank CEO. A spate of issues, starting with the sudden resignation of the then part-time chairman Atanu Chakraborty in March, which raised governance issues at the bank, could have led to Jagdishan deciding not to seek reappointment. Chakraborty alleged that certain “happenings and practices” at the bank were not in line with his values and ethics. However, a legal review initiated by the bank later found no basis for Chakraborty’s allegations. The bank’s board has to send at least two names to the Reserve Bank of India for its approval. There have been instances when the regulator insisted on at least one name of a candidate who is not from the bank. All this is for information This is not a buy/sell recommendation. Thank you, Technofunda24