Ex-SBI chief Dinesh Khara among contenders for HDFC Bank CEO
What's the story
Former State Bank of India (SBI) Chairman Dinesh Kumar Khara is being considered as a potential successor to Sashidhar Jagdishan for the position of Managing Director and Chief Executive Officer (MD & CEO) at HDFC Bank. The bank's board is said to be evaluating Khara for the top post, reported CNBC-TV18.
Past interactions
Khara previously declined part-time chairman offer
Notably, Khara had previously been approached by HDFC Bank for the role of part-time chairman. However, he had turned down the offer.
The approach was made after Atanu Chakraborty's resignation in March. Rajiv Kumar was later appointed as the bank's part-time Chairman.
"I have no clue about it and genuinely have no comment on the subject," Khara told CNBC-TV18 in response to the story.
Leadership transition
HDFC Bank explores internal and external candidates for CEO role
HDFC Bank recently announced that Jagdishan will not seek reappointment as MD & CEO when his term ends on October 26.
The bank is considering both internal and external candidates for this top management position.
Deputy Managing Director Kaizad Bharucha is among the internal candidates being considered. However, his potential candidacy could be limited by the end of his tenure as a whole-time director on the board in 2029.
Market response
Analyst views on HDFC Bank's leadership transition
The leadership transition at HDFC Bank has received mixed responses from analysts.
Macquarie and Bernstein have warned of potential uncertainty around the CEO succession amid weak investor confidence in the stock.
On the other hand, Nomura believes that appointing a suitable successor could trigger a re-rating of the stock.
JPMorgan also believes that HDFC Bank's current valuation already factors in many potential headwinds, limiting scope for de-rating.