HDFC Bank CEO Jagdishan Opts Out Amid Governance Concerns

Mumbai, Aug 29 (PTI) HDFC Bank's managing director and chief executive Sashidhar Jagdishan on Saturday opted out of being considered for reappointment after his current term ends on October 26, the largest private sector lender said in a regulatory filing.

Jagdishan, 61, will retire from the bank on October 26 after spending nearly three decades at the lender.

The HDFC Bank board will fast-track the process for selection and appointment of Jagdishan's successor "well within time", the exchange filing said.

He conveyed his decision not to seek re-appointment as the Managing Director and Chief Executive Officer and also reiterated the decision despite "persuasion" from the board, it added.

"The board deeply appreciated his commitment, leadership, contribution to the growth and stability of the Bank and his role in successful completion of one of the largest mergers in corporate India," the filing said.


It also conveyed best wishes to Jagdishan in his future endeavours.

The issue of Jagdishan's reappointment has been a subject of intense speculation, especially after the surprising resignation of non-executive chairman Atanu Chakraborty in March this year, citing concerns on ethics and governance practices at the lender.

A few weeks ago, Jagdishan was fined Rs 1 lakh after being found guilty of poor conduct in the MSRDC case, where there were allegations that a depositor was paid over and above the card interest rate for parking large sums of money with the bank.

There have also been a slew of other instances which have been reported in the recent months that point to a lack of governance practices at the largest Indian lender.

The bank scrip has also performed poorly in the last few months, with many investors pointing to challenges around widening the net interest margins even after two years of merging with mortgage lender parent HDFC as a key concern.