Sashidhar Jagdishan, MD & CEO of HDFC Bank, reiterated his decision to not seek reappointment.
Sashidhar Jagdishan has decided not to seek re-appointment as the Managing Director & Chief Executive Officer (MD&CEO) of HDFC Bank amid controversy that started with the abrupt resignation of the Bank’s Part-Time Chairman in March 2026.At its meeting held today, the Board of Directors of India’s largest private sector bank took note of Jagdishan’s communication to not seek reappointment. The Board also decided to fast-track the process for selection and appointment of his successor well within time.“Despite persuasion, 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.“The Board deeply appreciated his commitment, leadership, contribution to the growth, stability of the Bank and his role in successful completion of one of the largest mergers in corporate India. The Board conveyed its best wishes to him in his future endeavors,” per the Bank’s regulatory filing.Jagdishan has been helming India’s largest private sector bank since October 2020.According to industry experts the Bank’s Board may include the names of Kaizad Bharucha, Deputy Managing Director (DMD), HDFC Bank; Paresh Sukthankar, who served as the Bank’s DMD from 2014 till 2018; one of the four Managing Directors of State Bank of India -- Ashwini Kumar Tewari, Rana Ashutosh Kumar Singh, Rama Mohan Rao Amara and Ravi Ranjan; and Amitabh Chaudhry, MD & CEO, Axis Bank, in its shortlist of probable CEO candidates to be submitted to RBI.Atanu Chakraborty had resigned as Part-Time Chairman of the Bank on March 18, March 2026, citing “certain happenings and practices within the bank, that I have observed over last two years, are not in congruence with my personal values and ethics.”The Bank’s Board last month decided to issue warning letters and impose a monetary penalty of ₹1 lakh each on Jagdishan, the Chief Financial Officer, and the Group Head of Retail Assets in connection with the mobilisation of deposits from the Maharashtra State Road Development Corporation (MSRDC) in 2017 and 2021.This decision (to issue warning letters and impose a monetary penalty), made on July 23, 2026, came after a special committee found their actions to be “business overreach” rather than outright wrongdoing, the Bank said in a regulatory filing then.Responding to the alleged disguising of extra interest payments as marketing expenditure on deposits placed by a Maharashtra Government-owned entity, HDFC Bank, in a regulatory filing in May 2026, stated that this matter does not have a material impact on the financial statements and the internal controls at the Bank are robust.Reuters, in a August 27, 2026, report said HDFC Bank lender is facing a possible US class-action lawsuit over alleged illegal payments worth ₹45 crore ($4.7 million) to Maharashtra State Road Development Corporation to induce large deposits.“On August 13, a couple of law firms filed a proposed federal securities class action in a US District Court against HDFC Bank and two of its executives over the alleged illegal payments. Several other law firms have also issued alerts to HDFC Bank investors regarding the proposed class action,” per the report.An HDFC Bank spokesperson told Reuters that the bank “believes the lawsuit is without merit and intends to vigorously defend itself.”Published on August 29, 2026
