HDFC Bank Review Finds No Major Lapses, Clearing Path for CEO Reappointment

Overview

• Two Mumbai law firms, Trilegal and Wadia Ghandy, reviewed three years of board records and meeting videos and reported no material governance lapses, according to people with direct knowledge.
• The board plans to receive the report this month and then share it with the Reserve Bank of India for regulatory review.
• The outcome sets up HDFC Bank to propose another term for CEO Sashidhar Jagdishan, whose current tenure ends in October, with final approval resting with the central bank.
• The probe followed chairman Atanu Chakraborty’s March exit over “incongruence” with bank practices, which wiped 13.81% from the share price and drew a rare public reassurance from the RBI.
• Investors are watching closely because HDFC Bank serves about 120 million customers and holds just over a tenth of India’s bank deposits, and its stock has trailed ICICI Bank and the Nifty 50 since its 2023 merger with HDFC Ltd.