HDFC Bank CEO name may emerge in a week as Sashidhar Jagdishan's term nears end: Report

The name of the next managing director and CEO of HDFC Bank is expected to be announced within a week to 10 days, as the Reserve Bank of India fast-tracks the selection process, according to a report. This comes as Sashidhar Jagdishan’s term as head of India’s largest private bank is set to end on October 26.

According to a report in Moneycontrol, the two main contenders for the position are Anup Bagchi of ICICI Life Insurance and HDFC Bank deputy managing director Kaizad Bharucha. A senior official told the news site that Bagchi is the frontrunner and the board’s first preference. Attempts to get confirmation from the RBI on the timeline have not been successful.

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The new CEO is expected to be appointed well before HDFC Bank announces its September-quarter results, as per the report. The regulator prefers a long-term leadership solution rather than an interim arrangement, which might be necessary if a successor is not appointed before Jagdishan’s term ends. However, the RBI wants to avoid an interim CEO as it may not send the right message to investors.

The incoming CEO is likely to join Jagdishan in addressing investors on October 17, when HDFC Bank announces its second-quarter results. The board believes this will help boost investor confidence.

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Meanwhile, the possibility of Bagchi moving to HDFC Bank has led the ICICI Group to start planning for a successor at ICICI Life Insurance. The group usually moves senior executives from the bank to lead its subsidiaries. However, with new whole-time directors on the bank’s board, some seen as potential successors to ICICI Bank CEO Sandeep Bakhshi, the group may look outside the board for Bagchi’s replacement.