HDFC Bank Board Awaits Director Review

HDFC Bank's board is deferring its recommendation for CEO Sashidhar Jagdishan's reappointment to the Reserve Bank of India pending an additional review by independent directors. This inquiry, which has not been previously reported, is examining media allegations from May concerning preferential deposit rates, which are reportedly not permitted under central bank rules.

This situation follows an earlier external legal review that found no evidence to substantiate governance concerns raised by the former chairman, who resigned abruptly in March. The independent directors' findings are expected by early August. While the review has not yet indicated any wrongdoing, the resolution of this top management matter is considered crucial for the bank's stock re-rating, which has underperformed since March.