HDFC Bank has appointed Anup Bagchi as its new CEO, succeeding Sashidhar Jagdishan whose term concludes on October 26, 2026. This leadership transition takes place as HDFC Bank navigates a difficult period marked by a declining stock price, reduced net interest margins, and past controversies, including regulatory fines and a class-action lawsuit. Bagchi, formerly the MD and CEO of ICICI, is tasked with restoring the bank's market dominance and addressing operational challenges in a competitive landscape.

HDFC Bank has appointed Anup Bagchi as its new CEO, succeeding Sashidhar Jagdishan whose term concludes on October 26, 2026. This leadership transition takes place as HDFC Bank navigates a difficult period marked by a declining stock price, reduced net interest margins, and past controversies, including regulatory fines and a class-action lawsuit. Bagchi, formerly the MD and CEO of ICICI, is tasked with restoring the bank's market dominance and addressing operational challenges in a competitive landscape.

HDFC Bank has appointed Anup Bagchi as its new CEO, succeeding Sashidhar Jagdishan whose term concludes on October 26, 2026. This leadership transition takes place as HDFC Bank navigates a difficult period marked by a declining stock price, reduced net interest margins, and past controversies, including regulatory fines and a class-action lawsuit. Bagchi, formerly the MD and CEO of ICICI, is tasked with restoring the bank's market dominance and addressing operational challenges in a competitive landscape.

Amid a losing streak, India’s largest private lender, Housing Development Finance Corporation (HDFC) Bank, is taking steps to retain its market dominance. The $166 billion bank announced on Friday that former ICICI MD and CEO Anup Bagchi will serve as their new CEO. 

HDFC’s current CEO and MD, Sashidhar Jagdishan, will end his term on October 26, 2026, which triggered a selection round for his successor. Jagdishan’s term was highly controversial, marked by events including HDFC merging with its parent, India’s largest housing finance company, in 2023. During his term, Chair Atanu Chakraborty also resigned after citing ethical differences with the bank. 

The bank also made headlines after Jagdishan himself, CFO Srinivasan Vaidyanatha and group head Arvind Vohra were fined for offering differential interest rates to a government client. The bank is currently facing a US securities class action lawsuit for disguising ₹45 crore in interest deposits as marketing expenses. 

According to a Moneycontrol report, the board still stood with Jagdishan and expected him to continue for the next term. 

Meanwhile, Jagdishan was evaluating his position with investors, employees and a few RBI officials. Media reports indicate that a conversation with chairman Rajiv Kumar also changed his mind, after it was pointed out that he might have to take many tough managerial calls in his next term. Jagdeshan decided against a third three-year term, once his current term ends. 

Bagchi was suddenly under the spotlight. A board member told the media that he was originally chosen to satisfy the regulatory requirement for an external name. Sources said that even then, Bagchi was important, but the idea of someone from ICICI, the rival bank, leading HDFC was tough to accept. 

When Kumar’s office contacted Bagchi to ask if he would be open to heading HDFC Bank, he reportedly said, “Sir, please don’t put me in a spot.”

While many other names were under consideration, the chairman remained convinced about Bagchi, which led the Governance, Nomination and Remuneration Committee (GNRC) to name him as the next CEO. An RBI executive also highlighted Bagchi’s ability to look past the stock price and concentrate on leading the organisation. 

The new CEO has a considerable task, with the stock tumbling 27 per cent from its high at the end of last year. The bank’s net interest margins have also dropped to 3.34 per cent in March 2026 from 4.1 per cent in 2023. This was a sharper dip compared to the company’s competitors, ICICI Bank, Axis Bank and Kotak Mahindra Bank. ICICI Bank’s low-cost deposits ratio to total deposits was around 41 per cent, while HDFC’s figure fell to roughly 34 per cent.