HDFC Bank CEO Sashidhar Jagdishan will retire in October and will not seek reappointment, the bank said in a regulatory filing.
The bank’s board will fast-track the selection and appointment of Jagdishan’s successor as MD and CEO, and complete the process “well within time”, according to the filing.
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HDFC faced investor scrutiny
HDFC Bank has faced investor scrutiny since mid-March, when its former chairman Atanu Chakraborty abruptly resigned, saying practices at the bank were not in line with his “personal ethics”. An external legal review completed last month found no evidence to substantiate the governance concerns he had raised.
A bank spokesperson had no immediate response when contacted by Reuters for comment from HDFC Bank and Jagdishan regarding the additional inquiry, which has not been previously reported.
During a post-earnings call on Saturday, HDFC Bank management said the CEO succession process remained a “work in progress”.
HDFC Bank’s board is yet to approve its recommendation to reappoint Jagdishan, whose term ends in October. RBI rules require a bank board to apply for the reappointment of a CEO or submit fresh names for the position six months before the chief executive’s term ends.
In a rare comment in March, the RBI said that based on its periodic assessments, there were “no material concerns on record as regards its conduct or governance”.