Former CEC Rajiv Kumar Appointed HDFC Bank Chairman

He will replace Atanu Chakraborty, who resigned abruptly in March citing ethical concerns.

HDFC Bank’s regulatory filing stated that the board has approved the appointment of Rajiv Kumar as Independent Director of the bank for a period of 4 years with effect from June 30, 2026.

It also stated that subject to the approval of the Reserve Bank of India (RBI), the appointment has been approved, including remuneration of Kumar as Part-Time Chairman of the bank for a period of 3 years from the date of approval by the central bank.

Kumar, as Secretary, Department of Financial Services (2017-2020), faced public sector banks with high levels of unrecognized NPAs, undercapitalization, diversion of equity and debt, governance challenges including large consortiums, NBFCs struggling to fill microcredit gaps post demonetisation, ponzy schemes absorbing small savings of the poor, etc. He took on the task at a time when he was struggling with

Within two weeks of Kumar joining the Department of Financial Services, the accounts of around 3.38 lakh shell companies were frozen, damaging the structure of black money. It was stated that restrictions on ponzy schemes were adopted following the Prohibition of Unregulated Deposit Schemes Act (2019).

Through decisive policy direction and implementation, Kumar spearheaded a comprehensive clean-up of bank balance sheets by mandating transparent recognition and provision of NPAs and accountability among debtors under the Insolvency and Bankruptcy Code.

“His approach addressed the long-standing twin balance sheet problem by restoring credit discipline and restarting the creditor-debtor relationship. Structured around the ‘4R strategy’ of Recognition, Resolution, Recapitalization and Reforms, these efforts enabled a sharp turnaround in the banking sector, with public sector banks returning to sustainable profitability and improved asset quality.”

His tenure witnessed decisive action against illegal financial practices, strengthening regulatory oversight of cooperative banks and enforcing accountability in high-profile default cases. It was also stated that passport details have become mandatory for loans of Rs 50 billion and above, closing the door for large borrowers to escape before taking action.

“Fraud controls, specialized monitoring of over Rs 250 billion and IT-based risk scoring based on 34+ factors have replaced soft signals with lax controls often involved in lending by large consortia of 25+ banks. Transparency has suddenly come at a cost. A complete reset of the Creditor-Debtor relationship with a loud and clear message that money must be lent prudently and borrowers must repay,” he added.

The key underpinning of this transformation is the unprecedented recapitalization of public sector banks, which involved capital transfer in excess of Rs 3 lakh crore, helping restore solvency and lending capacity, the lender said.

This was complemented by a wide-ranging consolidation exercise in which 27 public sector banks were merged into 12 stronger entities and the Regional Rural Banks were transformed into a more efficient single-state, single-RRB structure. According to the bank, these measures have significantly increased operational efficiency, scale and competitiveness across the public banking system.

Kumar, who was appointed Finance Secretary in July 2019, also strengthened governance, risk management and regulatory oversight across banks by institutionalizing dedicated monitoring of major risks and implementing technology-driven risk assessment systems.

He gave equal importance to the protection of depositors and financial stability, including increasing deposit insurance cover from Rs 1 lakh to Rs 5 lakh.

Beyond balance sheet repair, Kumar has spearheaded growth-focused and inclusion-focused initiatives within the financial system.

HDFC Bank also clarified that Kumar had no affiliation with other directors or key management personnel of the bank.