Willing and raring to go for a new term: HDFC's Jagdishan

Sashidhar Jagdishan, managing director (MD) and chief executive officer (CEO), HDFC Bank, says there is no connection between the abrupt resignation of Atanu Chakraborty as part-time chairman of the bank and the lender's action against some employees on account of gaps in requirements regarding taking on board clients at its DIFC branch in the United Arab Emirates (UAE). In a video conversation with Manojit Saha and Subrata Panda, he says the bank's internal processes are robust enough to address issues that surface, and it remains focused on growth. Edited excerpts:

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Two days after Chakraborty resigned, HDFC Bank took action against a few employees. Is there a connection between the two?

■ They are coincidental. The issue that has emanated in international business is principally a matter of technical gaps in our taking clients on board and the documentation matters there. The scrutiny has not brought out any integrity issue or fraud. There is a process we have, and it has been there for several years, on how we address accountability. The recommendations of the disciplinary committee are taken and given to the authority, which is one of the board committees, and the board committee takes action. I don't have the authority to decide on these actions. Sadly, it was the timing. There was a board meeting, before which there was a meeting of the nomination and remuneration committee. Some (incomplete) discussion in the earlier meeting concluded that day. So that day action was taken.

Does the UAE incident bring to light gaps that need addressing?

■ It does. Every jurisdiction has different requirements on on-boarding and documentation, and on what kind of products we need to offer, their suitability and appropriateness, etc. Advice from experts, including legal experts, has come in. We have remediated the design of all our products and services. We have put in new processes. So we will rebuild the business in accordance with the new expectations of the regulations in West Asia. Our niyat is right. There could be some gap in implementation, but wherever there are issues, we will address them.

Are there any other jurisdictions where such gaps were pointed out?

■ We have reexamined our policies, processes, and product designs, and are still reexamining them to recalibrate them to the new expectations of each of those jurisdictions.