HDFC Bank Holds CEO Sashidhar Jagdishan’s Reappointment Process As Board Reviews Compliance Concerns

HDFC Bank has delayed recommending the reappointment of Chief Executive Officer and Managing Director (CEO & MD) Sashidhar Jagdishan to the Reserve Bank of India (RBI) as its Independent Directors conduct a review of certain media reports.

The review is examining allegations related to preferential interest rates offered on some large deposits, which are not allowed under RBI regulations. Jagdishan’s current term is scheduled to end in October, and the bank’s Board is yet to approve its recommendation for his continuation. The Independent Directors are expected to submit their findings in early August, after which the Board will take a decision on the reappointment process.

The delay comes after former Chairman Atanu Chakraborty resigned earlier this year in March, leading to investor focus on governance issues at the bank. An external legal review later found no evidence supporting the concerns raised after his resignation.