HDFC Bank CEO Sashidhar Jagdishan backs Keki Mistry to stay on as board chair

HDFC Bank’s top leadership is back in focus after CEO Sashidhar Jagdishan publicly backed interim chairman Keki Mistry for a permanent role, even as the bank confirmed that the CEO’s own reappointment process has been paused for now. Speaking during a post-earnings call on April 18, Jagdishan said the management is “rooting” for Mistry to continue beyond the current three-month interim term, while stressing that regulatory and board-level procedures must be completed first. The comments come amid heightened scrutiny following the sudden resignation of former chairman Atanu Chakraborty and ongoing questions around governance and overseas operations.

CEO backs Keki Mistry, but flags regulatory process

Jagdishan made it clear that the bank’s leadership favours continuity at the top, especially at a time of transition. He said Mistry’s experience and long association with the institution make him a strong candidate to lead the board on a permanent basis.

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However, he also underlined that the appointment cannot be fast-tracked. The proposal must first go through the Nomination and Remuneration Committee (NRC), followed by approval from the board, before being sent to the Reserve Bank of India (RBI).

Mistry was appointed interim chairman for three months on March 18, a day after Chakraborty’s abrupt exit. The final decision on extending his tenure will depend on regulatory clearance and internal consensus.

CEO reappointment put on hold for now

In a key development, Jagdishan confirmed that discussions around his own reappointment have been “ceased off” for the moment by both the board and the NRC.

He indicated that the matter will be revisited “in due course”, suggesting that the bank is prioritising stability in board-level leadership before taking up executive continuity decisions. The pause also comes at a time when the bank is expected to make certain disclosures, which could shape the timeline of future appointments.

This dual pause - on both chairman confirmation and CEO reappointment - signals a cautious and process-driven approach amid ongoing developments.

Atanu Chakraborty exit: Questions remain, bank maintains calm

The leadership reshuffle follows Chakraborty’s resignation on March 17, which raised eyebrows across the financial sector. In his resignation letter, he cited concerns that certain practices at the bank were “not congruent” with his personal ethics and values.

While the remarks triggered speculation, both Mistry and Jagdishan have pushed back against suggestions of deeper governance issues. The CEO reiterated that there is no evidence of internal conflict or power struggle within the bank.

He added that upcoming disclosures will offer greater clarity on the circumstances surrounding the exit, signalling that the bank intends to address concerns transparently.

Dubai mis-selling row: ‘Investors knew the risks’, says CEO

Jagdishan also addressed allegations of mis-selling in Dubai, where some investors claimed they were sold high-risk financial products.

Defending the bank’s position, he said the retail investors involved were fully aware of the risks and had actively sought high-yield investment options. According to him, these were informed decisions taken by investors looking for higher returns, rather than instances of products being pushed without disclosure.

The CEO’s remarks suggest the bank will contest any narrative of wrongdoing and position the issue as a case of informed risk-taking by clients.