Jagdishan, 61, conveyed his decision to the board and stated that he did not wish to seek reappointment despite persuasion from the directors, HDFC Bank said in a regulatory filing on Saturday. The board said it will fast-track the process of selecting and appointing his successor “well within time”.
His exit will mark the end of a 30-year-long banking career at HDFC Bank, where Jagdishan rose from a manager in the finance department in 1996 to the corner office. He took over as managing director and CEO on October 27, 2020, succeeding the bank’s long-serving chief Aditya Puri.
The leadership transition comes at a crucial time for the lender. Jagdishan’s reappointment had been the subject of intense speculation in recent months amid concerns around governance practices at the bank, the surprise resignation of non-executive chairman Atanu Chakraborty in March and questions over the bank’s recent performance.
Also read:
From finance manager to CEO
Known as “Sashi” among friends and colleagues, Jagdishan joined HDFC Bank in 1996 as a manager in its finance function after spending about three years at Deutsche Bank AG in Mumbai.
His rise through the ranks was closely linked to HDFC Bank’s own transformation into India’s largest private sector lender. He became business head of finance in 1999 and was appointed chief financial officer in 2008, a position he held for 12 years.
As CFO, Jagdishan played a central role in supporting the bank’s growth and aligning its financial strategy with its expanding business ambitions. His work earned him recognition as the Best CFO in the banking sector at the CNBC TV18 CFO Awards in 2013-14 and the Best CFO award by a special jury at the Financial Express CFO Awards in 2019.
In 2019, he was appointed the bank’s “Strategic Change Agent” and was handed additional responsibilities spanning legal and secretarial functions, human resources, corporate communications, infrastructure and administration, and corporate social responsibility.
Before taking charge as CEO, he was the bank’s group head and oversaw several key functions beyond finance, giving him a broad view of the organisation he would eventually lead.
Leading HDFC Bank through its biggest merger
Jagdishan took over as CEO in October 2020, at a time when HDFC Bank was already India’s dominant private sector lender and faced the challenge of sustaining growth at scale.
The defining event of his tenure came with the merger of HDFC Ltd, the mortgage financier that was also the bank’s parent, into HDFC Bank. The transaction created one of the largest financial services groups in India and was among the biggest mergers in Indian corporate history.
The HDFC Bank board, while announcing Jagdishan’s decision not to seek another term, specifically acknowledged his role in the successful completion of the merger, along with his contribution to the bank’s growth and stability.
Under his leadership, the bank received several industry recognitions, including Euromoney’s Best Bank in India award in 2021 and 2022, Financial Express’ Best Private Sector Bank award in 2023 and top rankings in multiple large-bank categories.
Also read:
A tenure that also faced challenges
However, his final months as CEO have been marked by heightened scrutiny. The question of his reappointment gained prominence after Chakraborty’s unexpected resignation as non-executive chairman in March, when he cited concerns around ethics and governance practices.
More recently, Jagdishan was fined Rs 1 lakh after being found guilty of poor conduct in the MSRDC case involving allegations that a depositor was paid over and above the card interest rate for parking large sums with the bank.
The lender has also faced investor concerns over challenges in improving net interest margins following the merger with HDFC Ltd. Its stock performance in recent months has reflected some of these concerns, with investors closely watching whether the benefits of the merger translate into stronger profitability and growth.
Jagdishan’s decision to opt out of reappointment now brings the focus squarely on who will succeed him and lead HDFC Bank through its next phase.
The banker behind the corner office
A Mumbai native, Jagdishan was born and brought up in Matunga. He is a science graduate with a specialisation in Physics from Mumbai University, a qualified chartered accountant and holds a master’s degree in Economics of Money, Banking and Finance from the University of Sheffield in the UK.
He has over 33 years of overall professional experience, including about 27 years at HDFC Bank.
Away from banking, Jagdishan is known to enjoy cooking and experimenting in the kitchen, although curd rice, or “thayir shadam”, remains a favourite. He also enjoys Carnatic music and reading, while cycling is his preferred form of exercise.
After nearly three decades at HDFC Bank and six years at its helm, Jagdishan will retire on October 26, closing a career that saw him grow from a finance manager into the chief executive of one of India’s most valuable and influential financial institutions.
: Shares of HDFC Bank Ltd closed at Rs 720 per scrip on Friday after a Rs 8.00 hike.
as a Reliable and Trusted News Source
(You can now subscribe to our )