HDFC Bank races to hire search firm for new CEO: Report

HDFC Bank is looking to hire a search firm to fast-track the appointment of its next chief executive, after Sashidhar Jagdishan's decision to step down caught the lender off guard, Bloomberg reported on Monday.

The bank has reportedly held talks with headhunters, including Egon Zehnder, since Jagdishan's announcement on Saturday.

HDFC Bank could appoint a search firm as early as this week as it accelerates the hunt for potential candidates, the report said.

Jagdishan, a three-decade veteran of the bank, decided not to seek another term as CEO. His last day will be October 26. The bank’s board will need regulatory approval for his replacement, who could be chosen from inside or outside the lender.

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HDFC Deputy Managing Director Kaizad Bharucha has emerged as the strongest internal contender.

Bharucha oversees retail and wholesale banking and has spent three decades at HDFC Bank. But his long tenure could complicate his appointment, the report said.

He has already served 12 years on the bank's board. Reserve Bank of India rules cap the continuous tenure of a CEO or whole-time director at 15 years. If appointed, Bharucha may therefore be unable to complete a full three-year term.

Jagdishan's exit comes as HDFC Bank faces questions over governance. These include alleged mis-selling by some employees at its Dubai branch and a case in which crores were classified as marketing expenses to pay higher interest to a state government entity.

The bank's shares have also sharply underperformed in 2026, falling nearly 27% year to date. By comparison, rival ICICI Bank has gained 6.5%, while State Bank of India is up 5.3%.

Jagdishan's decision has surprised analysts because it came less than two months before his current term ends on October 26. The bank now faces pressure to quickly find a successor, with regulators and investors closely watching the process.

"With Jagdishan's term ending on October 26, we believe the announcement on August 29 comes at a very late stage. In our view, the lateness itself is surprising, and so is the decision not to seek reappointment, which comes less than two months before his term ends," said Ankit Bihani, research analyst at Nomura.