HDFC Bank’s board has deferred discussions on the reappointment of Chief Executive Officer Sashidhar Jagdishan until it receives the findings of an ongoing legal review commissioned to examine concerns raised by former chairman Atanu Chakraborty in his resignation letter.
According to reporting by Mint, the delay has extended uncertainty around the leadership of India’s largest private-sector lender at a time when less than four months remain in Jagdishan’s current term.
The review was initiated after Chakraborty reportedly flagged concerns relating to board meeting records in his resignation communication. While the nature of those concerns has not been publicly detailed, the bank’s board appointed external legal advisers to examine the matter.
Board committee waiting for consolidated findings
The decision on Jagdishan’s future is expected to be taken only after the board receives a consolidated legal report.
According to Mint, the bank’s three-member Nomination and Remuneration Committee, chaired by Harsh Kumar Bhanwala, former chairman of the National Bank for Agriculture and Rural Development (NABARD), will meet only after the review process is completed.
People familiar with the matter told Mint that the report has missed internal timelines and remains under preparation.
One of the individuals cited by the publication said the findings are now expected by mid or late June.
Multiple law firms involved in review
The review process involves more than one legal adviser.
According to Mint, Trilegal and Wadia Ghandy & Co were appointed in March to examine board meeting minutes and assess whether any discrepancies existed in relation to issues highlighted by Chakraborty.
The publication further reported that the board also engaged a US-based law firm as part of the exercise. The delay in completing the review is reportedly linked to the pending findings from that firm.
Key developments include:
- HDFC Bank’s board has not yet initiated discussions on Jagdishan’s reappointment
- The Nomination and Remuneration Committee is awaiting a consolidated legal report
- Trilegal and Wadia Ghandy & Co were appointed to review board records
- A US-based law firm is also participating in the review
- The report is now expected by mid or end-June, according to people cited by Mint
- Jagdishan’s current term has less than four months remaining
Leadership decision gains significance
The timing of the review has increased attention on the succession process at the bank.
Sashidhar Jagdishan, 61, has led HDFC Bank since October 2020, succeeding long-serving chief executive Aditya Puri. Under Reserve Bank of India regulations, the appointment and reappointment of private-sector bank CEOs require regulatory approval following recommendations from the bank’s board.
As India’s largest private-sector lender by market capitalisation, any delay in leadership decisions is closely watched by investors, regulators and the broader banking industry.
The ongoing review has therefore become a critical step before the board can formally evaluate Jagdishan’s next term.
Governance scrutiny remains in focus
The episode underscores the growing importance of governance oversight at large financial institutions, where board processes, record-keeping and succession planning are subject to heightened scrutiny.
While the review does not imply any findings against the bank’s management, the board appears determined to complete the legal examination before proceeding with one of its most significant leadership decisions.
For now, the focus remains on the completion of the external review and the subsequent meeting of the Nomination and Remuneration Committee, which is expected to shape the next phase of leadership at HDFC Bank.