With less than a month remaining before HDFC Bank CEO Sashidhar Jagdishan completes his term, the Reserve Bank of India (RBI) has accelerated the process of selecting his successor, according to a report by Moneycontrol.
The two names currently under consideration are Anup Bagchi, managing director and CEO of ICICI Prudential Life Insurance, and HDFC Bank deputy managing director Kaizad Bharucha.
RBI seeks quick resolution on HDFC Bank leadership
A senior official cited in the report said a decision could emerge within the next week to 10 days, adding that Bagchi is viewed as the leading candidate. “He seems to be the first preference of the board,” the official said.
According to the report, HDFC Bank is expected to appoint the new chief executive before announcing its September quarter results. The regulator is reportedly keen on avoiding an interim leadership arrangement and wants a long-term solution for the country’s largest private sector bank.
Jagdishan’s tenure ends on October 26, leaving limited time for the appointment process. “It (an interim arrangement) may not send out the right signal to investors and the RBI wants to avoid such a situation,” said a person aware of the discussions.
The incoming CEO is expected to appear alongside Jagdishan during the bank’s second quarter earnings announcement on October 17. “The board is of the view that this is important to boost investor confidence in the bank,” a source said.
ICICI Prudential Life begins succession planning
As Bagchi’s move to HDFC Bank gains attention, ICICI Bank has reportedly started evaluating options for a successor at ICICI Prudential Life Insurance.
While the ICICI Group traditionally appoints senior executives from the bank to lead subsidiaries, sources said the lender may consider external candidates this time.
“However, this time around, given that the whole-time directors at the bank’s board are somewhat fresh and a few are seen as likely successors to Sandeep Bakhshi, the bank may look beyond its own board to fill Bagchi’s position,” an executive said.
Senior executives from ICICI Bank’s overseas operations are reportedly among the possible candidates. A decision on the new ICICI Prudential Life CEO is expected soon to ensure continuity.