RBI asks HDFC Bank to submit proposal on two appts after new CEO takes over

MUMBAI: The Reserve Bank of India has directed HDFC Bank to keep in abeyance the appointment of two directors from among its executives saying that the choice of candidates should be left to the incoming chief executive.

The bank had proposed the appointment of Sashdhar Jagdishan as an additional director and Bhavesh Zaveri as Executive Director. The two will however continue as additional directors till the shareholders meet the date for which is yet to be fixed.

The Reserve Bank of India has said, “since these are important positions in the Bank, the Bank is advised to examine and submit the proposal after a new MD and CEO assumes charge later this year,’’ the bank said in a filing.

Jagdishan, whom the bank termed a `Change Agent’ is in the reckoning to succeed Puri as the CEO. Zaveri, who has been with the bank since 1998, is the head of operations and in charge of IT and cash management.

The successor to Puri, who has headed the bank since day one, is being underway with head hunter Egon Zehnder shortlisting candidates. The bank’s board is expected to submit the proposals by the end of the month or early May.