HDFC Bank, India's largest private sector lender with assets worth Rs43.6tn ($460bn), faces a leadership vacuum after CEO Sashidhar Jagdishan unexpectedly resigned in August, less than six months after Chair Atanu Chakraborty stepped down citing "ethical differences" with senior management. The departures have exposed governance concerns at the systemically important bank, which is second only to State Bank of India and accounts for nearly 10% of the Nifty 50 index.

Jagdishan, who led the bank since 2020 and oversaw its merger with parent HDFC Limited, frequently clashed with Chakraborty. In May, the *Indian Express* reported HDFC allegedly disguised Rs450mn ($4.8mn) in interest payments as marketing spend between 2017-2021 to bypass preferential rate rules. A board probe concluded Jagdishan and two colleagues engaged in "business over-reach" but found no personal enrichment, fining each Rs100,000 ($1,060).

Analysts at Motilal Oswal warn HDFC is entering a leadership transition amid slowing growth, falling profitability, and significant shareholder wealth erosion. US investors have filed a class-action lawsuit in New York over share price drops following Chakraborty's resignation. The Reserve Bank of India's approval for Jagdishan's reappointment was already uncertain.