Kaizad Bharucha to step down from HDFC Bank in December after over three decades

HDFC Bank’s senior leadership transition gathered pace on Saturday, with deputy managing director Kaizad Bharucha seeking to step down at the end of December 2026 after more than three decades with the country’s largest private sector lender.

In an exchange filing, the bank said its board had accepted Bharucha’s request to relinquish office at the close of business on December 31, subject to approval from the Reserve Bank of India (RBI).

Bharucha was among the two candidates reportedly considered for the bank’s MD and CEO post after incumbent Sashidhar Jagdishan decided against seeking reappointment. The RBI subsequently selected Anup Bagchi, former MD and CEO of ICICI Prudential Life Insurance, for the position. Bagchi is scheduled to take charge on October 27.

The bank’s Governance, Nomination and Remuneration Committee had approved Bharucha’s request on Friday.

The board credited Bharucha with playing a significant role in the bank’s growth and institutional development, particularly in building its credit architecture, which it described as one of the lender’s defining strengths.

Separately, the board approved the reappointment of Lily Vadera as an independent director for another three years, from November 26, 2026, to November 25, 2029. Vadera, a former RBI executive director who headed the department of regulation, has more than 34 years of central banking experience.

Net rises

HDFC Bank reported a 4.7 per cent year-on-year rise in standalone net profit to ₹19,510 crore in Q2FY27. Net interest income increased 9.7 per cent to ₹34,619.2 crore, while asset quality improved both sequentially and year-on-year.

Bagchi, who joined the board as an additional director on October 2, told analysts that he would consult regulators, customers, shareholders and other stakeholders before setting the bank’s priorities.

He flagged growth, margins, asset quality and productivity as key areas of focus, alongside disciplined capital deployment and the opportunities arising from artificial intelligence and digital infrastructure.

Outgoing chief executive Jagdishan said net interest margins were positioned to improve as the rate cycle turned upward. He also expects a gradual shift towards retail and MSME lending to support margins over time.