New Delhi, Sept. 1 -- HDFC Bank Ltd., India's most valuable lender with a market capitalisation of $115 billion, has fast-tracked the search for a chief executive officer after incumbent Sashidhar Jagdishan decided not to seek an extension.

The lender plans to hire an executive search firm as early as this week to begin looking for his successor, according to people familiar with the matter. Hiring a new head quickly is crucial as the bank seeks to move past growing uncertainty since its part-time chairman had an acrimonious exit in March. The new CEO will have to assure investors the bank's governance systems are robust, as well as boost business at a time when its shares have lagged those of peers.

HDFC is one of India's systemically ...