Was Dinesh Khara Being Considered For HDFC Bank CEO Even Before Jagdishan Decided To Call It A Day

Reliable sources indicate that former State Bank of India (SBI) Chairman Dinesh Khara is emerging as a top contender to succeed Sashidhar Jagdishan as MD & CEO of HDFC Bank. Intriguingly, his name did not surface suddenly after Jagdishan announced he would not seek reappointment when his current term ends on October 26. Sources reveal that Khara’s name cropped up “informally” in July this year. That was when HDFC Bank’s Special Disciplinary Committee—examining the bank’s deposit arrangements with the Maharashtra State Road Development Corporation (MSRDC)—found no evidence of personal enrichment or mala fide intent, but characterized the executive conduct as “business overreach”. Consequently, the board issued warning letters and a Rs 1 lakh fine to Jagdishan, CFO Srinivasan Vaidyanathan, and a senior executive. The incident sparked corporate governance concerns. Industry experts argue it would have been ideal for Jagdishan to step down then, particularly in light of former chairman Atanu Chakraborty’s abrupt resignation on March 18, when he cited practices not in alignment with his “personal values and ethics.” While the regulator initially backed Jagdishan and the bank, the internal disciplinary committee’s Rs 1 lakh fine raised eyebrows and drew scrutiny. What does the 65-year-old Khara bring to the table? He carries over 40 years of banking experience, having joined SBI as a Probationary Officer in 1984 and retiring as its Chairman in August 2024 after a four-year tenure. At SBI, managing a massive balance sheet and a customer base running into hundreds of millions gave him unmatched experience in handling large-scale financial operations without compromising liquidity or capital adequacy. There is also speculation that Khara enjoys the backing of a prominent business house.