HDFC Bank Defers Discussion On CEO & MD Sashidhar Jagdishan’s Reappointment, Pending Legal Review

HDFC Bank has postponed discussions on the reappointment of Chief Executive Officer and Managing Director (CEO & MD) Sashidhar Jagdishan as it awaits the findings of an external legal review commissioned by the Board.

The review was initiated following concerns reportedly raised by former chairman Atanu Chakraborty in his resignation letter regarding board meeting records. The bank’s board appointed external legal advisers to examine the matter before deciding on Jagdishan’s next term. According to reports, the bank’s Nomination and Remuneration Committee has not yet begun deliberations on the CEO’s reappointment and is waiting for a consolidated legal report. The committee is chaired by former NABARD Chairman Harsh Kumar Bhanwala.

Law firms Trilegal and Wadia Ghandy & Co were engaged to review Board records, while a US-based law firm is also participating in the process. The report is expected later this month.

Jagdishan, who has led HDFC Bank since October 2020, has less than four months remaining in his current term. Under Reserve Bank of India (RBI) regulations, the appointment and reappointment of private-sector bank chief executives require approval from the regulator following recommendations from the bank’s Board.

The review must be completed before the Board decides on the bank’s leadership.