Anup Bagchi takes charge as HDFC Bank MD & CEO amid growth, governance challenges

Anup Bagchi on Tuesday took charge as managing director and chief executive officer of HDFC Bank, succeeding Sashidhar Jagdishan, whose tenure ended on Monday, the country's largest private sector lender said in an exchange filing.

Bagchi, a veteran of the ICICI Group, joins HDFC Bank at a time when the lender is facing challenges related to core income growth and margins, alongside investor concerns over governance and leadership.

He previously served as managing director and CEO of ICICI Prudential Life Insurance. His appointment makes him the first outsider to lead HDFC Bank in its more than three-decade history.

Post-merger integration remains on agenda

In brief comments during an earnings call he attended, Bagchi said some work related to HDFC Bank's 2023 merger with housing finance major HDFC was yet to be completed. He also said he would meet stakeholders to better understand the bank and its business.

Bagchi also praised HDFC Bank's leadership as speculation continued over whether he would retain the existing management team or bring in new executives.

The leadership transition comes as Kayezad Bharucha, a veteran of HDFC Bank who serves as deputy managing director, has announced his intention to retire by December this year.

Leadership transition follows governance concerns

Jagdishan did not seek an extension of his tenure amid allegations of governance shortcomings. The bank's internal probe had found shortcomings in the practice of booking high-value deposits by paying depositors an additional amount over and above the card rate under a different head. Jagdishan was also fined over the practice.

The bank faced further scrutiny following the surprise resignation of its non-executive chairman, Atanu Chakraborty, in March. Chakraborty had cited concerns relating to values and ethics, bringing questions around the bank's practices into sharper focus.

In its exchange filing announcing the leadership transition, HDFC Bank acknowledged Jagdishan's contribution during his tenure.

The bank said it "sincerely appreciates the strategic vision and unwavering commitment demonstrated by Jagdishan throughout his distinguished tenure".

"His stewardship has been instrumental in strengthening the bank's performance, culture, and customer-centric approach," it said, also recognising his role in steering the completion of one of the largest mergers in corporate India.

HDFC Bank shares near 52-week low

HDFC Bank shares were trading at ₹688 apiece on the NSE at 11:58 am on Tuesday, down 0.01% from the previous close of ₹688.05. The stock has declined 31.42% over the past year and was trading close to its 52-week low of ₹681.90, against a 52-week high of ₹1,017.50.

The stock has also fallen 30.61% so far this calendar year, according to NSE data, reflecting the pressure on investor sentiment as the bank navigates growth and margin concerns alongside questions over governance and post-merger integration.