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HDFC Bank weighs Bharucha and outsider for CEO
Livemint··30 Aug
HDFC Bank plans to include Kaizad Bharucha among CEO candidates after Sashidhar Jagdishan retires in October, two people familiar with the matter said. Bharucha is deputy managing director. The lender is also seeking an external name to meet Reserve Bank of India rules. Neither the bank nor Bharucha commented. Shares have fallen 27 percent this year.
Prism
What It Means For You
- Shareholders will watch the RBI approval step once HDFC Bank submits more than one CEO name.
- Depositors see no announced change to day-to-day operations while the succession search is fast-tracked.
- Foreign ownership was about 40 percent as of June-end, so overseas investors remain a large share of the register.
What's Happening
- The bank said on Saturday that Jagdishan, CEO since October 2020, will not seek reappointment.
- Last month the board penalised Jagdishan and three others over pricing of large deposits.
- Bharucha oversees retail and wholesale businesses and is not due to retire until 2029 under current tenure rules.
What Preceded The Search
- Former chairman Atanu Chakraborty resigned in March citing a clash with his personal values and ethics.
- An external legal review found no evidence to substantiate Chakraborty's governance concerns.
- Investors have also questioned gains from the 2023 merger with then-parent HDFC Ltd.
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