The order of preference in which the bank submitted the two names to the central bank is likely to be important in determining who gets the top job, the person said.
The internal candidate is most likely Deputy Managing Director Kaizad Bharucha, 60, while the identity of the external candidate could not be immediately ascertained.
Another senior internal executive, Jimmy Tata, 59, has been elevated by HDFC Bank’s board to whole-time director, designated as executive director, for a three-year period, subject to RBI approval. He is chief credit officer since December 2020.
The board approved the two candidates based on recommendations from its Governance, Nomination and Remuneration Committee and submitted their names to the RBI in order of preference, along with proposed remuneration, for a three-year term, the bank said in a stock exchange filing on Saturday. It did not disclose the names.
The selection process comes after incumbent MD & CEO Sashidhar Jagdishan told the board late last month that he would not seek reappointment after his second term ends on October 26. Jagdishan, 61, took charge in October 2020, succeeding Aditya Puri, and was reappointed in 2023.
Bharucha joined HDFC Bank’s board in 2014 and is its longest-serving executive board member. A career banker with more than 39 years of experience, he has been associated with HDFC Bank since its inception.
Under RBI norms, the tenure of a whole-time director, including the period served as chief executive, is capped at 15 years. For Bharucha to serve a full three-year term as MD&CEO, some relaxation from the central bank would therefore be required.
Tata, meanwhile, has been with HDFC Bank since 1994, when he joined as a relationship manager in the corporate banking department. He subsequently became head of the corporate banking department and was appointed chief risk officer in June 2013.
Several senior bankers have previously been linked to the HDFC Bank top post, including Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance Co; Rajiv Sabharwal, MD & CEO of Tata Capital; and Pralay Mondal, MD & CEO of CSB Bank. The RBI’s approval will ultimately determine the appointment.
Fourth whole-time director
Separately, HDFC Bank’s board has created an additional whole-time director position, taking the number of such directors to four, apart from the MD & CEO. This is intended to strengthen oversight and succession planning.
“The said position will be filled in consultation with the new managing director & chief executive officer, after he/she takes charge of the position,” the bank said in a stock exchange filing.
Because of the size of the bank, the person familiar with the matter said, “it needs four people at the director level to manage it, hence the board thought of creating this position.” Having four whole-time directors would be preferable to three for running the bank, the person said.
Private-sector banks typically have one MD & CEO and three other whole-time directors, designated as executive directors on the board. HDFC Bank currently has Jagdishan, Bharucha and V Srinivasa Rangan in these positions.
Earlier this year, Bhavesh Zaveri retired as executive director of the bank. Following his retirement, the bank did not appoint a replacement to its board.
Rangan’s reappointment has been approved by the bank’s board for one year from November 23, 2026, to November 22, 2027. Rangan, 66, is an executive director and heads the human resources, corporate legal, group oversight & secretarial, investment banking, information security group, ethics function and fraud & vigilance functions of the bank.
 "Deputy MD Kaizad Bharucha (left), whose name is doing the rounds for the position of MD & CEO. Meanwhile, the bank's Chief Credit Officer Jimmy Tata has been elevated as whole-time director")