HDFC Bank's new CEO Anup Bagchi faces two big tests: Governance and investor trust as stock slides 27%
HDFC Bank shares have declined over 27% so far in 2026, amid various issues from the abrupt resignation of part-time chairman Atanu Chakraborty to the allegations of mis-selling of AT-1 bonds
- Oct 1, 2026,
- Updated Oct 1, 2026 8:23 PM IST
Anup Bagchi, a veteran of the ICICI Group, will be the new MD and CEO of HDFC Bank, with the Reserve Bank of India clearing his appointment effective October 27.
Bagchi was currently the MD and CEO of ICICI Prudential Life Insurance. This will be the second instance of a leader from the insurance industry going on to lead a bank. Earlier, HDFC Life Insurance managing director Amitabh Chaudhary had been roped in to lead another private sector lender, Axis Bank, back in 2018.
The leadership change at the country’s largest private sector lender comes after incumbent Sashidhar Jagdishan announced in July that he was not going to seek a reappointment as MD and CEO.
Following Jagdishan’s decision to leave, HDFC Bank had sent the names of two candidates to the RBI, who could replace him. Bagchi was one of them. The other one was Deputy MD Kaizad Bharucha.
Read More: Meet Anup Bagchi, the ICICI veteran picked as HDFC Bank CEO
While many had seen Bharucha as the front-runner, a key challenge in his appointment was that the RBI has capped the tenure of whole-time directors in private banks at 15 years, which he will reach in 2029. In contrast, Bagchi has many more years ahead of him.
Bagchi is no stranger to the banking space. He served as executive director of ICICI Bank from 2017 to 2023, overseeing retail, business, and rural banking, and subsequently wholesale banking. He played a key role in strengthening the bank's retail franchise, driving profitable growth while maintaining credit and cost discipline.
Under his leadership, ICICI Bank became the first private-sector bank in India to surpass a retail mortgage portfolio of Rs. 2 lakh crore and successfully navigated the demonetisation period with limited business disruption.
He joins HDFC Bank when the lender has been besieged with a slew of problems related to governance values and mis-selling. The stock too has been a big underperformer in the backdrop of the negative news flow and broader equity market volatility. So, Bagchi has a lot of issues to address.
In March 2026, HDFC Bank’s part-time chairman Atanu Chakraborty resigned abruptly, stating that “certain happenings and practices” within the bank observed over two years, were “not in congruence” with his personal values and ethics.
His resignation raised several corporate governance-related questions. The lender later announced an independent review, which concluded that Chakraborty’s statement and its implications were not substantiated by the record and witness interviews.
Despite that clean chit, the lender has been in the spotlight on several fronts. Officials in its branch in Dubai were accused of mis-selling AT-1 bonds linked to Credit Suisse. The bonds were written down after Credit Suisse was bailed out by rival UBS. Although HDFC Bank won all seven cases filed against it in Bahrain by investors in the matter, the bank earlier did take action against some employees.
Separately, it was alleged that HDFC Bank had made payments worth Rs 45 crore to Maharashtra State Road Development Corp as higher interest for their deposits and that this was disguised under marketing budgets and sponsorships for a road safety drive. Following an internal review, Jagdishan and two other top officials were fined by the bank.
Amid all these news developments, HDFC Bank’s shares have seen under selling pressure. Year-to-date in 2026, the stock has tumbled more than 27% on the NSE, which is significantly more than the over 14% decline in the Nifty50 index and 9% fall in the Nifty Bank index in the same period.
Bagchi’s professional experience has been exhaustive, spanning banking, capital markets, and insurance. He will have to bring all his experience and learnings into play as he will look to drive HDFC Bank ahead. Turning around investor perception towards the bank though will be key.
Anup Bagchi, a veteran of the ICICI Group, will be the new MD and CEO of HDFC Bank, with the Reserve Bank of India clearing his appointment effective October 27.
Bagchi was currently the MD and CEO of ICICI Prudential Life Insurance. This will be the second instance of a leader from the insurance industry going on to lead a bank. Earlier, HDFC Life Insurance managing director Amitabh Chaudhary had been roped in to lead another private sector lender, Axis Bank, back in 2018.
The leadership change at the country’s largest private sector lender comes after incumbent Sashidhar Jagdishan announced in July that he was not going to seek a reappointment as MD and CEO.
Following Jagdishan’s decision to leave, HDFC Bank had sent the names of two candidates to the RBI, who could replace him. Bagchi was one of them. The other one was Deputy MD Kaizad Bharucha.
Read More: Meet Anup Bagchi, the ICICI veteran picked as HDFC Bank CEO
While many had seen Bharucha as the front-runner, a key challenge in his appointment was that the RBI has capped the tenure of whole-time directors in private banks at 15 years, which he will reach in 2029. In contrast, Bagchi has many more years ahead of him.
Bagchi is no stranger to the banking space. He served as executive director of ICICI Bank from 2017 to 2023, overseeing retail, business, and rural banking, and subsequently wholesale banking. He played a key role in strengthening the bank's retail franchise, driving profitable growth while maintaining credit and cost discipline.
Under his leadership, ICICI Bank became the first private-sector bank in India to surpass a retail mortgage portfolio of Rs. 2 lakh crore and successfully navigated the demonetisation period with limited business disruption.
He joins HDFC Bank when the lender has been besieged with a slew of problems related to governance values and mis-selling. The stock too has been a big underperformer in the backdrop of the negative news flow and broader equity market volatility. So, Bagchi has a lot of issues to address.
In March 2026, HDFC Bank’s part-time chairman Atanu Chakraborty resigned abruptly, stating that “certain happenings and practices” within the bank observed over two years, were “not in congruence” with his personal values and ethics.
His resignation raised several corporate governance-related questions. The lender later announced an independent review, which concluded that Chakraborty’s statement and its implications were not substantiated by the record and witness interviews.
Despite that clean chit, the lender has been in the spotlight on several fronts. Officials in its branch in Dubai were accused of mis-selling AT-1 bonds linked to Credit Suisse. The bonds were written down after Credit Suisse was bailed out by rival UBS. Although HDFC Bank won all seven cases filed against it in Bahrain by investors in the matter, the bank earlier did take action against some employees.
Separately, it was alleged that HDFC Bank had made payments worth Rs 45 crore to Maharashtra State Road Development Corp as higher interest for their deposits and that this was disguised under marketing budgets and sponsorships for a road safety drive. Following an internal review, Jagdishan and two other top officials were fined by the bank.
Amid all these news developments, HDFC Bank’s shares have seen under selling pressure. Year-to-date in 2026, the stock has tumbled more than 27% on the NSE, which is significantly more than the over 14% decline in the Nifty50 index and 9% fall in the Nifty Bank index in the same period.
Bagchi’s professional experience has been exhaustive, spanning banking, capital markets, and insurance. He will have to bring all his experience and learnings into play as he will look to drive HDFC Bank ahead. Turning around investor perception towards the bank though will be key.