HDFC Bank gets new chief after 26 years

MUMBAI: HDFC Bank Ltd has received approval for Sashidhar Jagdishan to become the next chief of India’s largest private-sector lender, the bank said in an exchange filing.

The Reserve Bank of India (RBI) has given the nod for Jagdishan to replace Aditya Puri as managing director and chief executive officer from Oct 27, according to the filing. Jagdishan has been given a three-year term by the RBI.

HDFC Bank shares climbed more than 5% in Mumbai trading after CNBC TV18 reported the news earlier yesterday. After 26 years at the helm, Puri is set to retire when he turns 70, the age limit set by the RBI for private-sector bank chiefs. The lender shortlisted three names for his successor in April.

Jagdishan will face the challenge of maintaining HDFC Bank’s relatively high asset quality and loan growth as the coronavirus pandemic sends the Indian economy into a deep slump. The nation’s biggest lender by market value has managed to skirt a twoyear-old shadow-banking crisis under Puri.

Widely known as Sashi, Jagdishan joined the bank in 1996 as a manager in the finance department. Formerly chief financial officer, he is now the group head and strategic “change agent” of the bank. He oversees functions including finance, human resources, corporate communications and corporate social responsibility. — Bloomberg