New Delhi, Aug. 31 -- Sashidhar Jagdishan's exit from HDFC Bank brings to an end a tenure marked by regulatory scrutiny, governance allegations and severe market underperformance, even as the bank's loans and deposits grew smartly. On Saturday, Jagdishan decided not to seek a third term as the head of India's largest private bank, bringing to an end his three-decade career when his term ends on 26 October. The move could revive investor confidence in HDFC Bank, banking industry observers said.

Jagdishan took over as chief executive officer and managing director in October 2020, succeeding Aditya Puri. While his first term was marked by the landmark merger with HDFC Ltd, the second term saw a slate of negative news, including alleged mis-...