Who will become next CEO of HDFC Bank?
What's the story
HDFC Bank, India's largest private lender, is considering Deputy Managing Director Kaizad Bharucha as a potential successor to current CEO Sashidhar Jagdishan. The bank is also looking for an external candidate for the top position. The move comes after recent leadership changes and governance concerns at HDFC Bank. Jagdishan's retirement is due in October after completing his second term. The final appointment will be subject to approval by the Reserve Bank of India (RBI).
Leadership transition
Search for new CEO amid leadership turmoil
The search for a new CEO comes after six months of turmoil at HDFC Bank, where leadership issues have affected its shares.
The bank announced Jagdishan's retirement on Saturday.
He was widely expected to continue as CEO until Atanu Chakraborty's resignation as chairman in March due to alleged discrepancies between the bank's practices and his "personal values and ethics."
An external legal review found no evidence to substantiate Chakraborty's governance concerns.
Market impact
Bharucha among top internal candidates for CEO position
Bharucha, a long-serving executive overseeing retail and wholesale businesses, is among the top internal candidates for the CEO position.
He is not due to retire until 2029, making him eligible under RBI rules.
HDFC Bank shares have fallen by 27% this year amid leadership changes and concerns over a merger with then-parent company HDFC Ltd.
Investors have also expressed disappointment over the lack of gains from this merger.