Mumbai: HDFC Bank has submitted two candidates’ names to the Reserve Bank of India (RBI) for the position of managing director and chief executive officer, as the country’s largest private sector lender moves closer to completing its leadership transition.
The development comes about a fortnight after incumbent MD and CEO Sashidhar Jagdishan decided against seeking reappointment.
RBI To Assess Candidates
HDFC Bank said its board approved the two candidates in order of preference following recommendations from its Governance, Nomination and Remuneration Committee.
The bank has also submitted details of the proposed remuneration for both candidates to the RBI. The regulator will assess the proposed names under its “fit and proper” criteria before approving the appointment.
The selected candidate will be appointed MD and CEO for three years.
Jagdishan’s current term ends on October 26. His decision to opt out of another term was announced on August 29, leaving the bank with a relatively short period to complete the leadership transition.
Board Structure Expanded
Alongside the succession process, HDFC Bank has announced changes to its board and expanded its pipeline of senior executives.
Chief Credit Officer Jimmy Tata has been appointed a whole-time director and designated executive director for three years. Tata, a veteran banker, joined HDFC Bank in 1994.
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The lender has also approved the reappointment of V Srinivasa Rangan for one year after his existing term ends on November 23.
Fourth Director Post Planned
HDFC Bank has decided to increase the number of whole-time directors to four, excluding the MD and CEO, as part of its succession planning.
The bank currently has three whole-time directors — Deputy Managing Director Kaizad Bharucha, Rangan and Tata.
The additional position will be filled in consultation with the incoming MD and CEO after the new chief assumes office.
The leadership changes follow former non-executive chairman Atanu Chakraborty’s resignation in March. Attention will now shift to the RBI’s decision on HDFC Bank’s next chief executive.
