HDFC's new CEO opens door to a comeback
HDB•HDFC Bank appointed Anup Bagchi as CEO, effective October 27, 2026, after approval from the Reserve Bank of India. The lender's net interest margin fell to 3.34% in the year ended March 2026 from 4.1% in 2023, while low-cost deposits declined to 34.1% from 44%.
1. Leadership change
HDFC Bank appointed Anup Bagchi, CEO of ICICI Life Insurance since 2023, as its new CEO. His appointment follows the resignation of Chair Atanu Chakraborty in March and the board's July fine of outgoing CEO Sashidhar Jagdishan and other senior executives for “business overreach” in deposit pricing.
2. Operational challenges
HDFC Bank's net interest margin contracted to 3.34% in the year ended March 2026 from 4.1% in 2023. Its low-cost deposits fell to 34.1% of total deposits from 44%; ICICI Bank's latest annual figure was 41.4%.
3. Questions for Bagchi
Bagchi's experience includes leading the development of ICICI Bank's internet banking and online trading platform. The article says the 2023 merger of HDFC with its parent may have affected the bank's agility, and notes that US-based investors filed a class-action lawsuit alleging the lender failed to properly disclose information about the deposit-pricing incident.
