HDFC Bank has appointed former finance secretary Rajiv Kumar as its part-time non-executive chairman, marking a decisive step to resolve the governance uncertainties that have plagued the lender.
The board also named a former Axis Bank executive to a key leadership role, signaling a comprehensive reset of its top management structure.
Despite showing improvements in core financial metrics, HDFC Bank's stock has fallen approximately 20% this year, reflecting investor caution over leadership stability and regulatory scrutiny.
The moves come as the bank seeks to remove the significant governance discount that has suppressed its share price.
Despite showing improvements in core financial metrics, HDFC Bank's stock has fallen approximately 20% this year, reflecting investor caution over leadership stability and regulatory scrutiny.
This leadership overhaul follows recent disclosures that an independent legal review found no evidence to substantiate concerns raised by former chairman Atanu Chakraborty.
The board had previously indicated it would reappoint Sashidhar Jagdishan as managing director and CEO for a third term, contingent on clearing these governance hurdles.