Maharashtra: HDFC Bank Likely To Name Kaizad Bharucha As Next CEO
Analysts see the leadership change as a positive development for the Bank’s stock which has been trading near a 52-week low due to the concerns around corporate governance: Reports
MUMBAI: India's largest private lender, HDFC Bank may name deputy managing Director Kaizad Bharucha and Jimmy Tata (chief credit officer) as the two internal candidates for the role of the next CEO after incumbent Sashidhar Jagdishan announced that he would not seek another term.
The lender on Saturday announced that Jagdishan will step down as Managing Director and Chief Executive Officer of HDFC Bank after deciding not to seek another term. Jagdishan will retire from the
bank's services at the close of business hours on October 26, 2026.
The lender said that it tried to persuade Jagdishan to reconsider his decision. However, the bank said he remained firm on his decision to leave after the completion of his current tenure. The statement said that the Bank would fast-track the selection and appointment of his successor.
Besides shortlisting Bharucha and Tata, the bank is also searching for an external candidate in keeping with a central bank rule requiring banks to submit multiple names for the CEO position. However, any new appointment will have to be approved by the Reserve Bank of India.
Jagdishan's decision comes less than two months before his second term would have ended, He has been with the Bank for nearly three decades.
He took over as MD & CEO in October 2020, and had been widely expected to seek a third term.
Kaizad Bharucha, aged sixty (60) years, is the Deputy Managing Director (DMD) of the Bank. He joined the Bank in October 1995. He joined the Board of the Bank in 2014 and is the longest serving
executive Board member. He became the DMD in April 2023. On the other hand, Jimmy Tata has been associated with HDFC Bank since 1994 in different capacities.
Analysts see the leadership change as a positive development for the Bank’s stock which has been trading near a 52-week low due to the concerns around corporate governance, and management continuity.
Says Rohan Mandora, banking analyst at Equirus Securities, “From a governance perspective, the announcement that there would be a new CEO and a new chairman would be a key factor in the stock’s upward movement. The stock was being punished in 2026 due to corporate governance issues and the sudden exit of its chairman.”
In March, Atanu Chakraborty, part-time chairman of HDFC Bank abruptly resigned from the board. HDFC Bank appointed veteran banker Keki Mistry as the interim chairman. The bank later appointed former IAS officer and ex-chief election commissioner Rajiv Kumar as the new part-time chairman in June.
The lender was also under the spotlight on issues around mis-selling at its branch in the Dubai International Financial Centre, for which the lender sacked a few employees.
In July, the Board of HDFC Bank penalised its senior executives after an internal probe found “business overreach” in the manner the bank secured deposits from the Maharashtra State Road Development Corporation (MSRDC).The Bank issued warning letters and a penalty of ₹ one lakh each to three senior executives—managing director and chief executive officer
Sashidhar Jagdishan, Chief Financial Officer Srinivasan Vaidyanathan, and Group Head of Retail Assets Arvind Vohra.
Last week the stock hit a fresh 52-week low of Rs 710 on the National Stock Exchange (NSE) amid a US class action lawsuit alleging that the bank violated foreign securities laws and caused losses to investors.
