One last bittersweet pitch for HDFC Bank as CEO Sashidhar Jagdishan prepares to exit

said it was an “emotional” moment to leave the organisation but expressed confidence in its resilience, technology investments and growth prospects. He said the bank had navigated regulatory restrictions, the Covid pandemic, a complex merger and monetary tightening, while positioning itself for a recovery in net interest margins as interest rates rise.

Sashidhar Jagdishan, who decided in August not to seek reappointment after his second three-year term ends on October 26, triggered an unplanned and accelerated succession process at India’s largest lender. The bank has appointed ICICI veteran Anup Bagchi as its next chief executive for a three-year term.

The leadership uncertainty followed a turbulent few months at the lender. Former chairman Atanu Chakraborty abruptly resigned in March, citing differences over values and ethics. The bank subsequently appointed external law firms to examine the issues raised by him, with the review finding no evidence to substantiate the concerns.

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Speaking on the investor call, Jagdishan said it had been a privilege to lead an organisation that brings together more than 200,000 employees and serves 100 million customers.

“Wanted monetary tightening and other governance matters of the recent past having been settled completely,” he assured.

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Jagdishan said the bank had invested in strengthening its technology infrastructure, from core systems to artificial intelligence, to improve product and service delivery. He added that its distribution network would yield better results as newer branches mature. He also expressed optimism about a recovery in net interest margins as the bank enters an upward interest-rate cycle. The improvement would be further supported by a gradual shift towards a higher share of retail and MSME assets relative to corporate and home loans, he said.

HDFC Q2 results

HDFC’s gross non-performing asset ratio was 1.11% as of September, compared with 1.17% at the end of the previous three months.

The Mumbai-based lender reported a net profit of Rs 19,510 crore for the second quarter of FY27, marking a 4.6% year-on-year jump from Rs 18,641 crore posted in the same period last year.

HDFC Bank’s net interest income (interest earned less interest expended) for the quarter ended September 30, 2026, grew 9.7% to Rs 34,620 crore from Rs 31,550 crore in the corresponding quarter last year. Net interest margin stood at 3.16% on total assets and 3.32% on interest-earning assets.

The lender’s asset quality remained stable in the September quarter as gross non-performing assets (GNPA) at Rs 35,810 crore, marginally lower than Rs 35,846 crore in June. Net non-performing assets (NNPA) declined to Rs 11,851 crore from Rs 12,357 crore in the previous quarter, the bank said.

The gross NPA ratio eased to 1.11% from 1.17% in the June quarter, while the net NPA ratio fell to 0.37% from 0.41%.