The Reserve Bank of India has confirmed the name of Sashidhar Jagdishan to succeed Aditya Puri because the chief executive and director of HDFC Bank, sources said.
Jagdishan, currently working because the 'change agent' of the most important private sector lender and head of finance, has been with the bank since 1996, and therefore the appointment will put an end to at least one of the foremost keenly watched successions within the banking system.
Puri is widely credited with building the bank from scratch and leading it for the last 25 years to be the second-largest by assets and also the foremost valued lender by investors. Puri retires on October 20.
The Reserve Bank of India (RBI), which was given an inventory of candidates in an order of priority, conveyed its approval to Jagdishan's name late last evening, the sources said. The bank will eventually inform the exchanges about the RBI nod.
According to a media report earlier this year, the bank had selected the names of internal candidates Sashidhar Jagdishan and Kaizad Bharucha, and Citi's Sunil Garg as probable candidates. The bank said it's given three names so as of their preference.
Puri had recently assuaged shareholder concerns at his last annual general meeting because the MD and CEO, saying succession has been taken care of. "He (the successor) has been with us for 25 years my successor was always in situ, a minimum of in my mind," Puri told shareholders at the lender's virtual AGM. Puri assuaged concerns on training and business understanding, assuring the shareholders that the candidate has "learnt very well".
The HDFC Bank scrip was trading 4.73 per cent up at Rs 1,049.30 on the BSE at 1025 hrs, as against a 0.96 per cent gains on the benchmark.