RBI seeks views on Anup Bagchi’s bid for HDFC Bank MD and CEO

HDFC Bank shares extended their gains for the second consecutive session on Tuesday after reports indicated progress in the bank’s search for a new managing director and chief executive officer.The stock climbed 0.9% to Rs 746.50 in early trade after rising 1.16% in the previous session. The movement followed reports that the Reserve Bank of India (RBI) has begun seeking feedback on the candidature of Anup Bagchi, who is currently the MD and CEO of ICICI Prudential Life Insurance.RBI reviews potential candidates According to reports, the RBI has sought views from the Insurance Regulatory and Development Authority of India (IRDAI) and ICICI Bank CEO Sandeep Bakhshi regarding Bagchi’s candidature. The central bank is assessing his suitability for a return to mainstream banking after more than three years in the insurance sector.HDFC Bank Begins CEO Selection Process, Submits Two Names To RBI or Approval Bagchi, 55, has led ICICI Prudential Life since 2023. Before joining the insurer, he served as executive director at ICICI Bank, overseeing areas including wholesale banking, transaction banking, markets and proprietary trading.The leadership search gained urgency after current HDFC Bank MD and CEO Sashidhar Jagdishan informed the board that he would not seek another term. His tenure ends on October 26.Succession process gains market attentionHDFC Bank submitted two names, in order of preference, to the RBI on September 12 for appointment as CEO for a three-year term. HDFC Bank Cuts MCLR By Up To 10 Bps, Check Revised Lending Rates Across Tenures While the bank did not reveal the candidates, reports identified Bagchi and HDFC Bank deputy managing director Kaizad Bharucha among those under consideration.Bharucha’s candidature could face a regulatory consideration as he would reach the RBI’s 15-year limit for continuous tenure as a whole-time director, MD or CEO in June 2029.The CEO transition has become a key focus for investors after HDFC Bank shares underperformed in 2026. Brokerage Nomura retained its ‘buy’ rating on the stock and said a clear leadership roadmap could support recovery through improved growth, deposits and margins.

Shares of HDFC Bank opened at Rs 738.85 against a previous close of Rs 739.50 and rose to hit an intraday high of Rs 748.80 apiece on the NSE. This came after it was reported that ICICI Bank veteran has joined the race to be the next MD & CEO.

Anup Bagchi, a seasoned ICICI Group veteran, has emerged as the leading contender to take the helm at HDFC Bank as its next Managing Director and Chief Executive Officer, sources told NDTV Profit.

The Reserve Bank of India has sought feedback from the insurance regulator and ICICI Bank chief executive Sandeep Bakhshi on the candidature of Anup Bagchi for the top job at HDFC Bank, two people familiar with the matter said.The 55-year-old, who has been managing director and CEO of ICICI Prudential Life Insurance for the past three years, is the front-runner for the position of MD and CEO at HDFC Bank. The RBI is examining whether his absence from mainstream banking during this period could affect the speed at which he adapts to changes in the regulatory and operating environment, the people said.Read more - Bharat Biotech is 'back in action' after Covid reset: Krishna Ella on TB vaccine, Nipah-Ebola shots, gene therapy, IPO plans & what’s nextBefore becoming the CEO at the insurer in 2023, he was an executive director at ICICI Bank from 2017, heading the wholesale banking, transaction banking, markets group and the proprietary trading group.134397236The assessment comes against a tight timeline. HDFC Bank this month submitted an application to the RBI, proposing the names of two candidates for the position. The banking regulator typically takes more than 35 days to respond after receiving such applications, while incumbent Sashidhar Jagdishan's term ends on October 26.Read more - TV ratings blackout gets longer: Broadcasters worried as pressure to restore audience measurement & provide advertisers greater visibility rises ahead of festive season"The key question is whether the RBI is comfortable with Bagchi's transition back into mainstream banking after more than three years away. Feedback from Irda (Insurance Regulatory and Development Authority of India) and ICICI Bank will be important in that assessment," said one of the people familiar with the matter. "With Jagdishan's term ending on October 26, the board may also have to keep contingency options ready if the regulatory process stretches beyond the available window."Internal ChoiceAn earlier instance of the RBI clearing the appointment of a banker returning from the insurance industry to head a private sector bank was Amitabh Chaudhry. He became MD and CEO of Axis Bank in 2019, after spending nearly nine years leading HDFC Life Insurance.The RBI did not respond to ET's request for comment.The central bank is also evaluating HDFC Bank deputy managing director Kaizad Bharucha (61), the second candidate proposed by the lender. Bharucha, however, has been a whole-time director of the bank since June 2014 and would hit the RBI's 15-year ceiling for continuous tenure as a whole-time director, MD or CEO in June 2029, before he could complete a full three-year term at the job.HDFC Bank has sought a relaxation of about six months from the tenure rules that would allow Bharucha, if selected, to complete a full three-year term. People familiar with the matter said such dispensations are typically considered only in exceptional circumstances, and the regulator may prefer a candidate who can provide a longer runway at the country's largest non-state lender. "Bharucha remains a credible option, but granting a relaxation would require the RBI to make an exception to its tenure framework," said another person familiar with the process. "Unless the first choice does not work out, the regulator may prefer an appointment that gives HDFC Bank a longer period of leadership continuity rather than revisit the succession question again in less than three years."ET was the first to report on September 14 that HDFC Bank submitted the names of Bharucha and ICICI Prudential Life CEO Anup Bagchi to the RBI for its top job.The bank's search began with a much wider field. It received more than 150 applications, of which around 50 were shortlisted and fewer than 10 bankers were eventually interviewed.Jagdishan's current term ends on October 26. He informed the board last month that he would not seek another term despite requests to continue, prompting HDFC Bank to accelerate its succession process.