HDFC Bank, ICICI, Axis, Kotak among 9 private banks facing CEO exits over next 2 years: Jefferies
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India’s banking sector is heading into a major leadership transition, with nine large private banks and financial institutions set to see CEO term expiries or changes over the next two years. HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank are among the lenders where CEO succession will be closely watched, according to Jefferies.
Federal Bank, Bandhan Bank, IDFC First Bank, Bajaj Finance and IndusInd Bank are also due for CEO term renewals or changes through 2028, the global brokerage said in its report.
As per the report, HDFC Bank MD & CEO Sashidhar Jagdishan’s term ends on October 26, 2026, while Kotak Mahindra Bank MD & CEO Ashok Vaswani’s term ends on December 31, 2026.
The following year will see KVS Manian’s term at Federal Bank end on September 22, followed by Bandhan Bank MD & CEO Partha Pratim Sengupta on October 31 and IDFC First Bank MD & CEO V Vaidyanathan on December 18. Axis Bank MD & CEO Amitabh Chaudhry’s term ends on December 31, 2027.
The succession cycle extends into 2028. Bajaj Finance CEO Rajeev Jain’s term ends on March 31, 2028, while IndusInd Bank MD & CEO Rajiv Anand’s term ends on August 24 and ICICI Bank MD & CEO Sandeep Bakshi’s on October 3.
Leadership changes already under way
The sector has already witnessed a series of senior management changes. KVS Manian moved from Kotak Mahindra Bank to Federal Bank as MD & CEO, while Rajiv Anand moved from Axis Bank to IndusInd Bank. Other recent appointments include Arvind Kapil at Poonawalla Fincorp, Vinay M. Tonse at Yes Bank, Partha Pratim Sengupta at Bandhan Bank and Raul Rebello at Mahindra Finance.
Jefferies said clarity on CEO terms at large financial institutions will be an important catalyst for the sector, alongside a normalisation of the earnings upgrade cycle.
“In addition to core earnings trend, clarity on terms of CEOs at large financials will be key. As we have highlighted in recent reports, besides the upcoming changes at HDFC Bank and Kotak Bank, some of the other large banks that may see change/renewal of term of CEOs over 1-2 years would be Federal Bank, Bandhan Bank, IDFCF Bank and Axis Bank,” it said.
The brokerage noted that Indian financials have lagged global peers over the past two years, with falling interest rates weighing on net interest margins and pockets of asset-quality pressure. For Indian financials, EPS growth was 7% in FY26 and is expected to improve to 9% in FY27 and 14% in FY28, according to the report.
Jefferies said a normalisation of the earnings upgrade cycle, the growth gap between Indian and global financials, and greater clarity on CEO terms could prompt foreign investors to reassess their allocations to Indian financials.