HDFC Bank board meeting with new chair Rajiv Kumar ‘refreshing’: CEO Jagdishan
HDFC Bank CEO Sashidhar Jagdishan called new chairman Rajiv Kumar's first board meeting ‘refreshing’, as the lender moves past months of governance turmoil. The bank also reported a 5% rise in Q1 FY27 profit, even as Jagdishan's own reappointment remains undecided.
HDFC Bank’s first board meeting, led by newly-appointed chairman Rajiv Kumar, was refreshing and well-received, Sashidhar Jagdishan, chief executive of the bank, told reporters on Saturday.
Jagdishan said that Kumar had done a ‘lot of homework’ and the bank is eager to see a ‘great partnership between the board and the management over the years’. Kumar, a former chief election commissioner (CEC) and financial services secretary whose appointment was approved by the Reserve Bank of India (RBI) a few days ago, replaces interim chair and HDFC veteran Keki Mistry.
“A hearty welcome to our new chairman, Rajiv Kumar. Looking forward to taking the franchise to the next growth stage. With the appointment of Kumar, there is a sense of stability and clear signal to minimize uncertainties in a very short time period,” said Jagdishan.
Quick answers to key questions
The first board meeting under Rajiv Kumar was described as refreshing by CEO Sashidhar Jagdishan, who noted Kumar's extensive homework and expressed optimism for a strong partnership between the board and management.
Kumar's appointment came after months of turbulence following the resignation of former chair Atanu Chakraborty, providing a sense of stability and a clear direction for minimizing uncertainties at the bank.
The nomination and remuneration committee, led by Harsh Kumar Bhanwala, is overseeing the CEO reappointment process, and once a decision is reached, stakeholders will be informed of the outcome.
HDFC Bank's shares saw a modest recovery, rising by over 4% in the month leading up to its Q1 results, although the stock has still faced pressures with a year-to-date decline of 17%.
While HDFC Bank's gross non-performing assets showed a slight increase to 1.17%, the overall asset quality remains stable, which should reassure investors about the bank's financial health.
Kumar’s three-year tenure also comes after months of turbulence that started when former chair Atanu Chakraborty suddenly quit in March. Chakraborty’s letter to the board cited ‘certain happenings and practices within the bank’ that were ‘not in congruence’ with his personal values and ethics. He did not elaborate.
That led to an external review by two law firms and an eventual clean chit to the bank. Chakraborty later called the review a superfluous exercise.
The law firm's review and the pending appointment of the chairman were delaying the board's decision on Jagdishan's tenure. Bank boards typically approve CEO reappointments and seek approval from the Reserve Bank of India about six months in advance. Unless reappointed, Jagdishan’s current term ends in October.
CEO reappointment still pending
Kaizad M. Bharucha, deputy managing director, HDFC Bank, said the bank’s governance, nomination and remuneration committee and the board are completely seized of the matter, and this (CEO appointment) is work in process.
“Once we have a decision from them, we will certainly let all stakeholders know of the outcome of that decision,” said Bharucha.
The board's three-member nomination and remuneration committee is headed by Harsh Kumar Bhanwala, the former chairman of the National Bank for Agriculture and Rural Development (Nabard).
However, it was unclear whether the committee met on Saturday or will do so next week. Srinivasan Vaidyanathan, the chief financial officer of the bank, said it is ‘not talking about internal meetings’ and governance and constitution of how it operates. “Let's leave that to the side.”
On Saturday, the bank reported a net profit of ₹19,060 crore, up 5% from the quarter ended 30 June 2025. Net profit, adjusted for last year’s transaction gains, one-off provisions and tax credits, grew by 9.8% over the quarter ended 30 June 2025. Last year, the bank partially divested its holding in non-bank financier subsidiary HDB Financial Services.
Its gross advances were at ₹30.6 trillion at the end of June, up 15.4% from the same period last year. Deposits stood at ₹31.7 trillion as of 30 June, an increase of 14.7% over the June quarter of FY26. The bank’s gross non-performing assets were at 1.17% of gross advances in Q1 of FY27, as against 1.15% in the March quarter, and 1.4% in the first quarter of FY26.
HDFC Bank also remained well-capitalized. The bank’s total capital adequacy ratio was 19.6% as on 30 June, compared with 19.9% in the same period last year, exceeding the regulatory requirement of 11.9%.
About the Author
Shayan leads the coverage for banking and finance in Mint. Based in Mumbai, he has spent 15 years as a journalist, joining the Mint team in 2018. Over the years, he has tracked the Reserve Bank of India (RBI), commercial banks, and the complex world of shadow banking.<br><br>His expertise goes beyond just reporting news, and he specializes in explaining the "why" behind India’s financial shifts. Shayan has covered major milestones in the industry, including the rollout of the Insolvency and Bankruptcy Code (IBC), mergers in the banking and non-banking space, and the many challenges facing the country's credit markets. He has tracked cases of wrongdoings at India’s private sector banks and murky boardroom battles, trying to get behind the scenes.<br><br>Shayan is driven by a commitment to accuracy and clear, honest reporting. He believes in making finance easy to understand, ensuring his readers and investors stay informed about the forces shaping their money. When not at work, he tries to hone his amateurish photography skills, read fiction, and listen to music. You can follow his work and updates on LinkedIn and Twitter/X.
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