MUMBAI: The HDFC Financial institution board has appointed former chief election commissioner and ex–finance secretary Rajiv Kumar as chairman of the financial institution, topic to RBI approval. Beginning June 30, the board has proposed a four-year time period. The appointment ends uncertainty over the subsequent chairman, following the sudden resignation of former chairman Atanu Chakraborty in March, who cited that his function was not congruous along with his values and ethics. His resignation was adopted by the appointment of board member Keki Mistry as interim chairman and an investigation by a authorized panel, which discovered no proof that Chakraborty had raised any considerations in regards to the financial institution. Kumar, 66, a 1984-batch IAS officer of the Jharkhand cadre, headed the division of economic companies from 2017 to 2020, at a time of peak banking stress marked by unprovided dangerous loans, weak capital, and a freeze in mortgage progress. Inside weeks, Kumar froze 3.4 lakh shell corporations, putting at black-money networks. This was adopted by the 2019 deposits-ban legislation to curb ponzi schemes. His tenure noticed a clean-up of public sector financial institution steadiness sheets by means of bad-loan recognition and enforcement of IBC-led borrower accountability. He later served as chief election commissioner, overseeing the 2024 Lok Sabha elections. He might be anticipated to make use of the identical expertise to revive confidence within the financial institution, which has seen numerous senior-level exits in current months. Kumar’s appointment is the newest in a broader churn in non-public banks. Other than the chairman’s appointment, the financial institution’s board should additionally determine on the succession of the chief government, as Sashidhar Jagdishan’s present time period as MD and CEO ends on Oct 26, 2026. The board should submit no less than three candidates to the regulator for approval.
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