New Delhi, Aug. 31 -- India's largest private lender was not expecting to start its new leader hunt quite yet. But Sashidhar Jagdishan's decision on Saturday to not seek a new term as chief executive when his tenure ends in October has suddenly put HDFC Bank in transition mode. Deputy managing director Kaizad Bharucha is widely expected to don the mantle of an interim chief till a full-time executive is picked and gets a regulatory nod.

The transition comes barely five months after another unexpected exit at the top. In March, then chairman Atanu Chakraborty resigned, citing "certain happenings and practices within the bank" that were "not in congruence" with his personal values and ethics. He did not elaborate, and a subsequent legal re...