HDFC Bank eyes new CEO as it battles deposit slowdown and investor doubts

HDFC Bank will soon appoint a new managing director and chief executive, with the Reserve Bank of India reviewing two names submitted by the board: long-time insider Kaizad M Bharucha and external candidate Anup Bagchi, currently MD and CEO of ICICI Prudential Life Insurance. The change follows the scheduled retirement of Sashidhar Jagdishan on October 26 and comes after a series of governance concerns, including the sudden resignation of part-time chairman Atanu Chakraborty.

The bank’s CASA ratio has slipped to 32.3% in Q1 FY27, and its net interest margin fell to a record low of 3.26%, pressuring profitability. New leadership will be tasked with rebuilding retail and low-cost deposit growth, improving margins, and re-energising investor relations. Analysts also note the need to curb senior-management attrition, integrate recent merger assets, and exploit the larger branch network for cross-selling and deposit mobilisation.