According to the report, Jagdishan informed directors at an unscheduled Saturday meeting that he would not seek reappointment. Board members reportedly urged him to reconsider, but he maintained his position. He has spent three decades at HDFC Bank.

Kumar, who became chairman two months ago, reportedly sought quicker lending growth, technology improvements and action on longstanding issues. The former Finance Secretary and Chief Election Commissioner also wanted changes among senior executives close to Jagdishan. The report links the CEO’s departure to his opposition to those personnel changes, an account the bank has rejected as misleading and inaccurate.

The reported transition comes as HDFC Bank faces pressure on several fronts. Its shares have declined 28% this year, while investors remain concerned about margins after last year’s merger with HDFC Ltd. The report also points to RBI concerns about digital systems and internal governance.

Recruitment firm Egon Zehnder has been engaged to identify the next CEO. Kumar reportedly favours an external hire, but the approaching term expiry leaves limited time. Deputy Managing Director Kaizad Bharucha is mentioned as a possible interim choice, not a confirmed appointment. RBI clearance would be necessary for a new CEO.