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HDFC Bank on Monday announced the appointment of former Chief Election Commissioner and former Finance Secretary Rajiv Kumar as its new part-time chairman, subject to approval from the Reserve Bank of India (RBI).
The bank’s board approved Kumar’s appointment as part-time chairman for a three-year term, effective from the date of RBI approval. It also appointed him as an Additional Independent Director for a four-year term beginning June 30, 2026, subject to shareholders’ approval.
Kumar will succeed Atanu Chakraborty, who resigned as chairman in March citing ethical concerns. The appointment was approved by the board following the recommendation of its Governance, Nomination and Remuneration Committee.
HDFC Bank said Kumar has not been debarred from holding the office of director by any order of the Securities and Exchange Board of India (SEBI) or any other statutory authority.
Before serving as the 25th Chief Election Commissioner of India, Kumar held several senior government positions, including Secretary in the Department of Financial Services between 2017 and 2020.
The bank, in a profile accompanying the announcement, highlighted his role in steering reforms during a period when public sector banks were grappling with high levels of non-performing assets (NPAs), capital constraints and governance challenges.
According to the bank, within two weeks of Kumar taking charge of the Department of Financial Services, bank accounts linked to about 338,000 shell companies were frozen as part of efforts to curb black money. It also credited him with helping push through the Banning of Unregulated Deposit Schemes Act, 2019.
The lender said Kumar led a broad clean-up of bank balance sheets through stricter recognition and provisioning of NPAs and by enforcing borrower accountability under the Insolvency and Bankruptcy Code framework.
“His approach addressed the long-standing twin balance sheet problem by restoring credit discipline and rebooting the creditor-debtor relationship. These efforts, structured around the ‘4R strategy’ of Recognition, Resolution, Recapitalisation, and Reforms, enabled a sharp turnaround in the banking sector, with public sector banks returning to sustained profitability and improved asset quality,” the bank said.
The bank also highlighted measures introduced during his tenure to strengthen oversight of large loans and tackle financial fraud.
“Fraud checks, specialised monitoring above Rs 250 crore, and IT-based risk scoring on 34-plus factors replaced soft signals with loose controls, built into lending by large consortiums of often more than 25 banks. Opacity, suddenly, carried a cost. A total reset of the Creditor-Debtor relationship with a loud and clear message that money has to be lent prudentially and debtors must pay back,” it said.
HDFC Bank noted that Kumar oversaw the recapitalisation of public sector banks through capital infusions exceeding Rs 3 lakh crore, helping restore lending capacity and strengthen balance sheets.
The bank also cited the consolidation of 27 public sector banks into 12 larger entities and the restructuring of Regional Rural Banks under a “one state, one RRB” model as key reforms undertaken during his tenure.
In addition, Kumar was credited with strengthening governance, risk management and regulatory oversight across the banking system, while also championing depositor protection measures, including increasing deposit insurance coverage from Rs 1 lakh to Rs 5 lakh.
Beyond financial sector reforms, the bank said Kumar promoted initiatives aimed at expanding financial inclusion and supporting long-term growth in the banking system.
With inputs from agencies
