SynopsisBy 2027, leadership transformations are set to take place across several key Indian banks, with HDFC Bank and Kotak Mahindra Bank leading the way. This wave of changes creates a competitive landscape for experienced banking professionals. It is vital for the boards to ensure they maintain continuity while injecting innovative strategies. As a result, succession planning has emerged as an essential concern for bank leadership.iStockBank succession wave: Six big lenders prepare for leadership changes through 2027 At least six prominent Indian banks are set to face leadership transitions between now and the end of 2027, putting succession planning firmly on boardroom agendas as the sector prepares for a rare clustering of top-level vacancies. HDFC Bank and Kotak Mahindra Bank will be among the first to make leadership decisions, with the terms of Sashidhar Jagdishan and Ashok Vaswani ending in October and December 2026, respectively.The concentration of leadership changes could intensify competition for proven banking talent and test the depth of the succession pipelines built by bank boards, particularly as regulators place greater emphasis on orderly succession and governance. "One of the biggest issues facing corporate India today is succession planning, and that is largely missing. There is a period of uncertainty; investors would want clarity on the new CEO and his or her strategy and wait for it," said Suresh Ganapathy, MD at Macquarie Capital. The situation is pronounced in the banking sector."With so much competition from NBFCs and fintechs, the banking sector has a relatively shallow pool of proven candidates to choose from, particularly given the RBI's strict oversight of CEO remuneration," said a person familiar with senior-level hiring in the sector who did not wish to be named.ET OnlineInternal & External CandidatesHDFC Bank faces the most immediate transition after Jagdishan said he would not seek another term when his current three-year tenure ends on October 26.Deputy managing director Kaizad Bharucha is the most visible internal candidate, although his potential tenure would be constrained by the Reserve Bank of India's 15-year ceiling on continuous service as managing director, chief executive or whole-time director.Bharucha, who was appointed as an executive director in June 2014, would hit this ceiling in 2029.Kotak Mahindra Bank is preparing for a leadership decision as Vaswani's first three-year term ends on December 31, 2026. The lender has a relatively broad internal leadership pool, including Anup Saha, Paritosh Kashyap and Jaideep Hansraj, giving the board several senior executives to evaluate alongside any external candidates. Two names have already been sent to the RBI for approval.ICICI Bank, where Sandeep Bakhshi opted for a shorter term during his last reappointment, also has a relatively deep internal leadership pool, giving the board multiple potential choices when it considers succession.Axis Bank CEO Amitabh Chaudhry's current term runs until December 31, 2027, completing nine years at the helm. Under RBI rules that cap continuous tenure as CEO or whole-time director at 15 years and set an upper age limit of 70, Chaudhry could technically serve another two three-year terms. Axis Bank also has a sizeable internal bench, including Subrat Mohanty, Munish Sharda and Neeraj Gambhir.Structured PipelineState Bank of India chairman CS Setty's three-year tenure runs until around August 2027. The country's largest lender traditionally has a more structured succession pool comprising its managing directors.IDBI Bank will also face a leadership transition, with managing director and CEO Rakesh Sharma's term ending in March 2028.Ujjivan Small Finance Bank is searching for a new chief executive after Sanjeev Nautiyal stepped down and the lender appointed an interim CEO. Fino Payments Bank is looking for a CEO, with Ketan Merchant serving as interim CEO."With so much competition from NBFCs and fintechs, the banking sector has a relatively shallow pool of proven candidates to choose from, particularly given the RBI's strict oversight of CEO remuneration," said a person familiar with senior-level hiring in the sector who did not wish to be identified."The challenge for bank boards will be to balance continuity with the need for a fresh strategy," said the person familiar with senior-level hiring by banks. "Internal candidates offer familiarity with the institution, its culture and regulatory relationships, while external appointments can bring new capabilities but carry execution and transition risks."With several searches potentially overlapping, banks with thinner internal benches could find themselves competing for the same small pool of executives with experience across large retail, corporate, digital and risk businesses.Read More News on...moreless