Anup Bagchi takes charge at HDFC Bank

HDFC Bank is handing over leadership as Sashidhar Jagdishan completes his tenure as managing director and chief executive officer at the close of business on 26 October 2026, with Anup Bagchi taking over on 27 October for a three-year term running to 26 October 2029. Bagchi will be the first chief executive brought in from outside the bank and steps in as India’s largest private sector lender navigates pressure on growth, profitability and investor confidence.

Bagchi has said that in the very near term he plans to engage with regulators, customers, shareholders and other stakeholders and gather insights before setting the bank’s priorities. Investors are watching how quickly the new leadership will define its agenda on growth, deposits, margins and governance as HDFC Bank’s shares have been trading close to their 52-week low and have underperformed ICICI Bank (IBN) over the recent period.

Before joining HDFC Bank, Bagchi spent more than three decades in financial services, almost all of it within the ICICI Group, which he joined in 1992. His experience spans treasury, retail and wholesale banking, investment banking, capital markets and digital financial services, providing broad exposure to different parts of the financial system.

He has served as managing director and CEO of ICICI Securities and as an executive director of ICICI Bank, and moves to HDFC Bank from his role as managing director and CEO of ICICI Prudential Life Insurance. This background gives him detailed familiarity with a major competitor that has recently delivered stronger earnings momentum and higher net interest margins than HDFC Bank.

Recent quarterly numbers highlight the contrasting trajectories of HDFC Bank and ICICI Bank. In Q2 FY27, HDFC Bank’s net interest income rose 9.7% to ₹34,620 crore, while ICICI Bank reported net profit of ₹14,843 crore, up 20.1% year-on-year, and net interest income of ₹25,339 crore, an increase of 17.7% year-on-year. For investors, these growth rates underscore the difference in earnings momentum between the two lenders.

Margins have become a focal point in this comparison. HDFC Bank reported a net interest margin of 3.16% in Q2 FY27, compared with 4.18% at ICICI Bank. HDFC Bank’s NIM also declined from 3.26% in the previous quarter, reinforcing the pressure on the bank to improve the economics of its lending and funding operations under the new CEO.

HDFC Bank continues to show strong balance sheet expansion. In Q2 FY27, total deposits rose 18.8% year-on-year to ₹33.27 lakh crore, while gross advances increased 16.3% to ₹32.20 lakh crore. However, the composition and cost of this deposit base have emerged as key issues for profitability, with the bank under pressure to strengthen its low-cost funding.

One point of comparison is the current account and savings account mix. In Q2 FY27, HDFC Bank’s average CASA ratio stood at 31.6%, while ICICI Bank’s was 35.8%. The difference illustrates how liability composition has become an important competitive variable as Bagchi looks to deepen primary banking relationships and improve the stability and cost of funding.

Despite the margin and growth challenges, HDFC Bank enters Bagchi’s tenure with broadly stable asset quality. In Q2 FY27, the bank reported a gross non-performing asset ratio of 1.11% and a net NPA ratio of 0.37%, providing a platform from which to focus more sharply on returns and efficiency. Metrics such as return on assets, return on equity, the cost-to-income ratio and margin trends are expected to be central to how his early performance is judged.

The leadership change extends beyond the CEO’s office. Several long-serving executives, including deputy managing director Kaizad Bharucha and V Srinivasa Rangan, are scheduled to exit in the coming months, and Rajiv Kumar has taken over as chairman following the resignation of Atanu Chakraborty. Against this backdrop, Bagchi is expected to oversee significant changes to the senior team while working to rebuild investor confidence through consistent improvements in growth, deposit mobilisation, margins and returns.