Rajiv Kumar pushed for changes at HDFC Bank; Sashidhar Jagdishan chose to step down: Report
Just two months into his tenure at HDFC Bank, Kumar wanted the bank to accelerate loan growth, become more aggressive on technology, address legacy issues, and replace some senior executives around the CEO
- Sep 1, 2026,
- Updated Sep 1, 2026 3:24 PM IST
HDFC Bank CEO Sashidhar Jagdishan decided to step down after new chairman Rajiv Kumar pushed for changes at the lender, including faster loan growth, greater focus on technology, and changes to the senior leadership team, Bloomberg reported on Tuesday, citing people familiar with the matter.
Jagdishan, a three-decade veteran of the bank, resisted some of Kumar's proposals. Rather than push out bankers he supported, he decided not to seek a third term when his current tenure ends next month.
The decision was announced after a hastily convened board meeting on Saturday. It came as a surprise to the bank and adds to the turmoil that has dogged HDFC Bank in recent years, the report said.
Don't Miss: HDFC Bank fast-tracks CEO search: Who could succeed Jagdishan as more names crop up?
Rajiv Kumar Pushes For Change
Kumar was appointed HDFC Bank's part-time chairman in June, months after Atanu Chakraborty, the previous chairman, resigned abruptly in March. The resignation had raised questions about governance at India's largest private-sector lender.
A former finance secretary and veteran civil servant, Kumar has banking-sector experience. He spent more than two years heading the Department of Financial Services during a difficult period for the state-owned banks. He helped drive their cleanup as bad loans and capital shortages threatened to choke credit. He also spearheaded a consolidation that reduced the number of public-sector banks from 27 to 12.
Just two months into his tenure at HDFC Bank, Kumar outlined several measures to Jagdishan. He wanted the bank to accelerate loan growth, become more aggressive on technology, address legacy issues, and replace some senior executives around the CEO, according to the report.
The demands showed that Kumar was seeking significant changes and expected Jagdishan to support them. Instead, Jagdishan reportedly told colleagues that he would not seek a third term.
Must Read: HDFC Bank's next CEO: Deputy MD Kaizad Bharucha in focus after Jagdishan opts out
Board Tried To Change His Mind
A board meeting was called on short notice on Saturday, where Jagdishan formally announced his decision.
The report said that directors tried to change his mind, but Jagdishan held firm - and the bank then prepared a formal announcement and sent it to the stock exchanges that evening.
The abrupt decision left HDFC Bank scrambling to begin the succession process. The nomination and remuneration committee had yet to appoint a search firm when Jagdishan decided to step aside.
The bank is expected to appoint Egon Zehnder as early as this week to lead the search. The exercise could also lead to broader changes in the bank's leadership.
Kumar is leaning toward an external candidate for CEO, according to the report. He is not convinced that the bank's existing candidates can deliver the faster growth and stronger execution he is seeking.
HDFC Bank CEO Sashidhar Jagdishan decided to step down after new chairman Rajiv Kumar pushed for changes at the lender, including faster loan growth, greater focus on technology, and changes to the senior leadership team, Bloomberg reported on Tuesday, citing people familiar with the matter.
Jagdishan, a three-decade veteran of the bank, resisted some of Kumar's proposals. Rather than push out bankers he supported, he decided not to seek a third term when his current tenure ends next month.
The decision was announced after a hastily convened board meeting on Saturday. It came as a surprise to the bank and adds to the turmoil that has dogged HDFC Bank in recent years, the report said.
Don't Miss: HDFC Bank fast-tracks CEO search: Who could succeed Jagdishan as more names crop up?
Rajiv Kumar Pushes For Change
Kumar was appointed HDFC Bank's part-time chairman in June, months after Atanu Chakraborty, the previous chairman, resigned abruptly in March. The resignation had raised questions about governance at India's largest private-sector lender.
A former finance secretary and veteran civil servant, Kumar has banking-sector experience. He spent more than two years heading the Department of Financial Services during a difficult period for the state-owned banks. He helped drive their cleanup as bad loans and capital shortages threatened to choke credit. He also spearheaded a consolidation that reduced the number of public-sector banks from 27 to 12.
Just two months into his tenure at HDFC Bank, Kumar outlined several measures to Jagdishan. He wanted the bank to accelerate loan growth, become more aggressive on technology, address legacy issues, and replace some senior executives around the CEO, according to the report.
The demands showed that Kumar was seeking significant changes and expected Jagdishan to support them. Instead, Jagdishan reportedly told colleagues that he would not seek a third term.
Must Read: HDFC Bank's next CEO: Deputy MD Kaizad Bharucha in focus after Jagdishan opts out
Board Tried To Change His Mind
A board meeting was called on short notice on Saturday, where Jagdishan formally announced his decision.
The report said that directors tried to change his mind, but Jagdishan held firm - and the bank then prepared a formal announcement and sent it to the stock exchanges that evening.
The abrupt decision left HDFC Bank scrambling to begin the succession process. The nomination and remuneration committee had yet to appoint a search firm when Jagdishan decided to step aside.
The bank is expected to appoint Egon Zehnder as early as this week to lead the search. The exercise could also lead to broader changes in the bank's leadership.
Kumar is leaning toward an external candidate for CEO, according to the report. He is not convinced that the bank's existing candidates can deliver the faster growth and stronger execution he is seeking.