HDFC Bank proposes Kaizad Bharucha, Anup Bhagchi as CEO candidates to RBI, reports reveal — Here's all we know

HDFC Bank has forwarded the names of two candidates for its next CEO and MD to the Reserve Bank of India — Kaizad Bharucha, Deputy MD of HDFC Bank and Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance — according to multiple reports today citing sources.

HDFC Bank and Bagchi did not respond to queries, the reports added.

Earlier, on 12 September, HDFC Bank informed the exchanges that it had submitted the names of two candidates to the RBI for the position of MD and CEO, but did not disclose the names.

Notably, this comes after HDFC Bank, on 29 August, informed that incumbent Sashidhar Jagdishan has decided to step down from the position. According to the HDFC Bank filing, “despite persuasion”, 61-year-old Jagdishan has decided not to seek reappointment when his term ends on 26 October this year. It had added that the process to find the successor was fast-tracked.

Bank's boards usually approve reappointments and seek the RBI's nod, six months in advance. Jagdishan’s current term itself was approved by the board in March 2023 — seven months before the deadline.

Kaizad Bharucha remains top candidate

Even in August, Bharucha was among the top names floating around as likely to take the post, Reuters had reported, citing sources. They added that the second option would be external, to comply with RBI rules, which require submission of multiple names for the CEO post.

Bharucha has a 35-year banking career and has been the Deputy MD at HDFC Bank since 19 April 2023. As Deputy MD, he oversees a broad spectrum of responsibilities within the Bank.

He currently leads Corporate Banking, Emerging Corporates Group, Business Banking – Working Capital, Investment Banking, Rural Banking Group, Emerging Enterprises Group, Healthcare Finance, Sustainable Livelihood, Retail Assets, and Mortgage Business.

Bharucha is not due to retire until 2029, when he will have been a full-time director for 15 years, making him eligible to be CEO under RBI rules. The maximum tenure of a whole-time director at banks is 15 years, though exemptions can be sought.

The RBI's decision is expected between 7and 10 days after names have been submitted. 

Anup Bagchi joins top two names

According to his profile on the ICICI Prudential Life website, Bagchi joined the ICICI Group in 1992 and has over 30 years of experience across retail banking, treasury, investment banking, small-scale industry, payment and settlement systems, retail broking, retail financial product distribution and wealth management.

Before he was appointed MD and CEO, Bagchi was a Non-Executive Director of ICICI since October 2018 and an Executive Director of ICICI Bank since February 2017, during which he headed the Wholesale Banking, Transaction Banking, Markets Group, and Proprietary Trading Group.

Given the crisis mode at HDFC Bank, whether it be Bharucha or Bagchi, the next CEO will have their plate full restoring shaken investor confidence and moving past lingering governance concerns. 

HDFC Bank's share price has fallen 27% this year, against a 3.5% decline in the Nifty Bank Index, marking their worst relative under-performance since 2003, it said.