HDFC Bank board meeting with new chairman Rajiv Kumar 'refreshing': CEO Jagdishan

The first board meeting of HDFC Bank, chaired by newly appointed chairman Rajiv Kumar, was refreshing and well received, Sashidhar Jagdishan, the bank’s managing director, told reporters on Saturday.

Jagdishan said Kumar had done “a lot of homework” and the bank looked forward to a “great partnership between the board and management over the years”. Kumar, a former Chief Election Commissioner (CEC) and Financial Services Secretary, whose appointment was cleared by the Reserve Bank of India (RBI) a few days ago, replaces interim chairman and HDFC veteran Keki Mistry.

“We warmly welcome our new chairman, Rajiv Kumar. We look forward to taking the franchise to the next phase of growth. Kumar’s appointment feels stability and a clear signal to minimize uncertainties in a very short period of time,” said Jagdishan.

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The first board meeting under Rajiv Kumar was described by CEO Sashidhar Jagdishan as refreshing, noting Kumar’s extensive homework and expressing optimism about a strong partnership between the board and management.

Kumar’s appointment came after months of turmoil following the resignation of former chairman Atan Chakraborty, providing a sense of stability and a clear direction to minimize uncertainty at the bank.

The Nomination and Remuneration Committee, chaired by Harsh Kumar Bhanwala, oversees the CEO reappointment process and once a decision is reached, stakeholders will be informed of the outcome.

Shares of HDFC Bank saw a modest recovery, rising more than 4% in the month ahead of Q1 results, although the stock still faced pressures with a 17% year-on-year decline.

While HDFC Bank’s gross non-performing assets showed a slight increase to 1.17%, 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 turmoil that began when former chairman Atanu Chakraborty quit abruptly in March. Chakraborty’s letter to the board cited “certain events and practices at the bank” that were “not consistent” with his personal values and ethics. He did not elaborate.

This led to an external audit by two law firms and ultimately a clean letter to the bank. Chakraborty later called the review a redundant exercise.

A law firm review and the pending appointment of a chairman delayed the board’s decision on Jagdishan’s tenure. Bank boards usually approve the reappointment of CEOs and seek approval from the Reserve Bank of India about six months in advance. If Jagdishan is not reappointed, his current term ends in October.

Re-appointment as CEO is still pending

Kaizad M. Bharucha, Deputy CEO, HDFC Bank, said that the bank’s Governance, Nomination and Remuneration Committee and the Board of Directors are fully committed to the matter and this (CEO appointment) is under process.

“Once we have a decision from them, we will certainly let everyone involved know the outcome of that decision,” Bharucha said.

The three-member nomination and remuneration committee is headed by Harsh Kumar Bhanwala, former chairman of the National Bank for Agriculture and Rural Development (Nabard).

However, it was not clear if the committee met on Saturday or if it would happen next week. Srinivasan Vaidyanathan, the bank’s chief financial officer, said he “doesn’t talk about internal meetings” and governance and setting up how it works. “Let’s put it aside.

On Saturday, the bank reported a net profit of ₹19,060 crore, up 5% from the quarter ended June 30, 2025. Net profit, adjusted for last year’s transaction gains, one-off provisions and tax credits, rose 9.8% for the quarter ended June 30, 2025. Last year, the bank partially divested its stake in non-bank financial subsidiary HDB Financial Services.

Her gross advances were in the amount of ₹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 June 30, up 14.7% from the June quarter of FY26. The bank’s gross non-performing assets stood at 1.17% of gross advances in Q1FY27, up from 1.15% in the March quarter and 1.4% in Q1FY26.

HDFC Bank also remained well capitalized. The bank’s total capital adequacy as of June 30 was 19.6% compared to 19.9% in the same period last year, exceeding the regulatory requirement of 11.9%.