The Reserve Bank of India (RBI) has approved the reappointment of Sashidhar Jagdishan as the Managing Director and Chief Executive Officer of HDFC Bank for the next three years. HDFC Bank, which merged with its parent company Housing Development Finance Corporation (HDFC) in July 2023 to form India's largest private bank, in an exchange filing says Jagdishan's second stint as HDFC Bank MD and CEO will start on October 27, 2023.
"The Reserve Bank of India (“RBI”) upon recommendation of the Bank’s Board of Directors in this regard, the RBI vide its communication dated September 18, 2023, has approved the re-appointment of Mr. Sashidhar Jagdishan (DIN: 08614396) as the Managing Director and Chief Executive Officer of the Bank for a period of 3 (three) years w.e.f. October 27, 2023 to October 26, 2026."
Jagdishan has an overall experience of over 31 years. He completed his graduation in science with specialisation in physics, is a chartered accountant by profession, and holds a master’s degree in economics of money, banking, and finance from the University of Sheffield, United Kingdom.
He joined HDC Bank in 1996 as a manager in the finance function. He became business head of finance in 1999 and was appointed as chief financial officer in 2008. HDFC Bank says he played a critical role in supporting the growth trajectory and led the finance function with a pivotal role in aligning the organisation in achieving the strategic objectives over the years.
Prior to his appointment as MD & CEO, he was the group head of the bank in addition to overseeing the functions of finance, human resources, legal & secretarial, administration, infrastructure, corporate communications, and corporate social responsibility.
The HDFC Bank stock is trading 2.84% lower at ₹1,582.75 following a weak opening as compared to the previous trading session. The stock is currently trading 10% lower than the 52-week high of ₹1,757.80 achieved on July 3, 2023. At the current share price, HDFC Bank's m-cap stands at ₹11.9 lakh crore.
Jagdishan played a key role in steering the HDFC-HDFC Bank merger, which is touted to be the biggest transaction in India's corporate history. The merged entity has combined assets of nearly ₹15 lakh crore, the second-largest after Mukesh Ambani-led conglomerate Reliance Industries (₹17.63 lakh crore).
Jagdishan was paid ₹10.57 crore worth of remuneration in the financial year 2022-23, according to HDFC Bank's annual report for 2022-23. This was 62.4% higher than ₹6.51 crore paid to him as annual compensation in FY22. Jagdishan's remuneration also included payment received as part of the deferred cash variable of previous years.
HDFC Bank had recorded a 30% year-on-year (YoY) growth in profit for the April-June quarter of 2023-24 at ₹11,952 crore. The bank's revenue surged 26.9% YoY to ₹32,829 crore from ₹25,870 crore in the year-ago period. The bank’s net interest income surged 21.1% to ₹23,599 crore from ₹19,481 crore in the year-ago period.
