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HDFC Bank MD and CEO Sashidhar Jagdishan on Thursday said he is willing to be considered for another term at the helm, even as the lender navigates an unexpected board-level exit that has stirred investor concern.
“There is a process… If you are asking whether I would like to be part of that process as a candidate, absolutely,” Jagdishan told CNBC-TV18, adding that the board is aware of his willingness to continue, with his current tenure ending in October.
His remarks come a day after non-executive chairman Atanu Chakraborty resigned citing differences with the board, a move Jagdishan described as a “huge surprise” for both management and directors. “My surprise is akin to what the other board members also experienced… this came as a huge surprise to all of us,” he said, noting that Chakraborty did not share specific concerns despite being asked.
Seeking to reassure stakeholders, Jagdishan emphasised that the bank’s fundamentals remain intact. “I believe the foundation of the company continues to be intact,” he said, pointing to the regulator’s endorsement of the bank’s governance and operational strength.
The Reserve Bank of India has indicated that the lender remains financially sound and professionally managed, while interim chairman Keki Mistry has also sought to calm nerves, stating there are no material issues affecting the bank.
Jagdishan rejected suggestions of friction with Chakraborty, describing their working relationship as “extremely cordial” and rooted in healthy governance practices. “We are a democratic institution… there will be views we agree with and views we do not. That cannot be construed as friction,” he said.
On concerns around governance decisions, including the proposed IPO of HDB Financial Services, Jagdishan said processes were “professional and robust” and overseen by board-appointed committees, dismissing speculation that disagreements over the matter led to the resignation.
Addressing the sharp market reaction, Jagdishan termed the episode “short-term noise” and said the bank would continue proactive engagement with investors while internally reviewing decisions to strengthen oversight. “Like past challenges, we will convert this into an opportunity,” he said.
He added that periodic organisational restructuring is under consideration to refresh leadership and strengthen management depth, while maintaining that asset quality remains stable and the bank is on track with its post-merger growth commitments.
Below are the excerpts of the interview.
Q: You called it an unfortunate event on the concall earlier, but Atanu Chakraborty actually served alongside you since 2021. He sat in the same boardroom meetings, reviewed the same numbers, and has now left citing practices not in congruence with his values. As the person running this bank day to day, did you not have any indication that this was coming?
Jagdishan: No, we had no such indication. My surprise is akin to what the other board members also experienced yesterday. This came as a huge surprise to all of us. Most of the board members did ask him to specify if there were any concerns. He did say that he had none to share. We did try to persuade him to remove some of the contentious lines, but I guess he felt that it was his calling and that it was something innocuous, so he wanted to keep it as it is.
I know those lines did cause a bit of a stir among the directors. You can see how the investor community has reacted as well. But I believe the foundation of the company continues to be intact.
You have heard the new interim part-time chairman, Keki Mistry, accepting the position, which itself is a great testimony to the strength and resilience of the institution. In any institution, there will be errors, omissions, and issues that need to be addressed within a defined timeline. No one can say there are zero issues, especially in a very large bank. The icing on the cake was the testimony from the regulator this morning, when we saw a statement backing the franchise based on its observations and inspections over a long period.
Q: Since we understand there was friction between Mr. Chakraborty’s style of working and what was expected of that non-executive position, could you elaborate on your working relationship with him, given that he worked with you since 2021?
Jagdishan: No, there was no friction. In a good governance model, people will have views. We are a democratic institution, so there will be views we agree with and views we do not. That cannot be construed as friction; it is good governance. I have a style of engaging with people, and I have engaged with the chairman and board members frequently and regularly. There are points where I may not agree with all decisions or views, and I am not apologetic about that. But that is normal in any organisation. I must acknowledge that I have a lot of respect for some of the thought processes and ideas he brought into governance and oversight. There have been many takeaways, and the organisation has institutionalised some of them. It has been extremely cordial.
Q: You mentioned disagreements. How would you describe that dynamic?
Jagdishan: I would not term it friction. But yes, where I had a different thought process, I agreed to disagree.
Q: If you could address concerns raised over social media regarding the sale of HDB Financial and its IPO, with claims that there were disagreements with Mr. Chakraborty on this issue—was there any concern raised by him on how to proceed?
Jagdishan: It is unfair to say that was a reason for disagreement. We had a board-appointed committee that looked into the partial disinvestment and IPO of HDB. It was a very well-conducted process, and Keki was the chairman of the committee. The institution allows free and fair expression of views. The committee made recommendations to the board, and the board may have had its own views. That is normal. Sometimes we agree, sometimes we do not. The process followed was professional and robust, and there should be no question about its credibility.
