The board has acknowledged Jagdishan’s decision after unsuccessfully urging him to continue. It is accelerating the search for his replacement. Jagdishan became chief executive in 2020 and steered the lender through its merger with HDFC Limited.

His planned departure follows a difficult stretch for the bank. Part-time chairman Atanu Chakraborty abruptly quit in March 2026, citing a mismatch between some bank practices and his personal ethical standards. Questions over business conduct and compliance have since added pressure on the leadership.

A key dispute concerns allegations that additional interest offered to the Maharashtra State Road Development Corporation was presented as marketing expenditure to secure deposits. In July 2026, a special committee concluded that the bank had exceeded acceptable business boundaries. Jagdishan and two other senior executives each received a warning letter and a Rs 1 lakh fine.

US law firms have also raised the prospect of a class-action case, alleging unlawful payments of Rs 45 crore linked to MSRDC deposits. HDFC Bank rejects the case as baseless and says it will contest it. The bank has also maintained that its internal controls are robust.

Names being discussed by industry observers include Deputy MD Kaizad Bharucha, former Deputy MD Paresh Sukthankar, SBI’s Ashwini Kumar Tewari and Axis Bank CEO Amitabh Chaudhry. These are not confirmed appointments; the final selection list will go to the RBI for approval.