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Oct 13 2026
HDFC Bank, Kotak CEO picks signal how the rules of leadership are being reshaped
Overview
The article “HDFC Bank, Kotak CEO Picks Signal How the Rules of Leadership Are Being Reshaped” examines how the leadership requirements of large organisations are changing. It uses the selection of Anup Bagchi as HDFC Bank’s new chief executive and Anup Kumar Saha as Kotak Mahindra Bank’s incoming chief executive to illustrate a broader movement away from traditional, internally developed leadership.
The article argues that artificial intelligence, falling workplace trust and changing customer expectations are weakening the conventional command-and-control model. Modern leaders are increasingly expected to demonstrate adaptability, transparency, empathy, ethical judgment and the ability to guide teams without relying solely on hierarchy, experience or institutional knowledge.
Details
Article Information
Article: HDFC Bank, Kotak CEO Picks Signal How the Rules of Leadership Are Being Reshaped
Author: Sundeep Khanna
Publication: Mint
Publication date: 13 October 2026
Primary subject: The changing nature of corporate leadership in banking and other industries
Central argument: Traditional leadership based on hierarchy, authority and accumulated knowledge is becoming less relevant as technology and organisational structures evolve.
Leadership Appointments
HDFC Bank: The bank appointed Anup Bagchi as its new chief executive officer.
External appointment: According to the article, Bagchi is the first HDFC Bank CEO appointed from outside the organisation.
Possible significance: The selection may represent an attempt by HDFC Bank to begin with a fresh perspective following its recent challenges.
Kotak Mahindra Bank: The bank selected Anup Kumar Saha as its incoming chief executive officer.
Professional background: Saha brings consumer-finance experience from Bajaj Finance.
Strategic relevance: His experience may help Kotak Mahindra Bank respond to changes affecting consumer behaviour, financial products and the competitive banking environment.
Wider Leadership Transition
External CEO appointments: A Spencer Stuart study of S&P 1500 companies reportedly found that 40% of new chief executives appointed in the United States during 2025 came from outside their organisations.
Indian companies: A related study reportedly found that nearly 50% of BSE 200 companies experienced a CEO transition during the preceding five years.
Appointments during 2025: Thirty-three of the BSE 200 companies reportedly appointed new leaders during 2025.
Broader implication: Companies are becoming more willing to consider external candidates whose capabilities are suited to emerging strategic challenges.
Declining Workplace Trust
Trust in chief executives: The 2026 Edelman Trust Barometer reportedly found that trust in CEOs declined to 66% in 2025, compared with 70% in 2024.
Trust in managers: Trust in direct managers reportedly fell from 79% in 2024 to 72% in 2025.
Employee expectations: Employees increasingly associate trustworthy leadership with transparency in managing AI adoption, organisational restructuring and uncertainty.
Leadership challenge: Executives must communicate clearly about difficult changes while maintaining credibility and confidence among employees.
Artificial Intelligence and Authority
Access to knowledge: AI enables junior employees to access information that senior executives may previously have accumulated over many years.
Traditional sources of authority: Hierarchy, experience and institutional knowledge may no longer provide leaders with the same automatic authority they once possessed.
Changing leadership value: Leaders are increasingly valued for judgment, communication, adaptability and their ability to help organisations act under uncertain conditions.
Organisational redesign: An October 2026 McKinsey Quarterly article cited in the report argues that AI agents are changing organisations from conventional hierarchies into teams assembled around outcomes.
Emerging Leadership Model
Human-centred leadership: Harvard Business Impact’s Global Leadership Study reportedly identifies a movement towards more human-centred, agile and technology-integrated leadership.
Emotional intelligence: Modern leaders are expected to understand and respond constructively to the concerns and motivations of employees.
Empathy: Leaders must recognise the human consequences of technological, operational and organisational change.
Ethical decision-making: Responsible judgment is becoming especially important as companies deploy AI and redesign roles and working arrangements.
Influence without authority: Leaders increasingly need to obtain cooperation through credibility and persuasion rather than formal position alone.
Agility: Executives must be prepared to revise decisions and operating models as circumstances and technologies change.
Mission-Command Approach
Military influence: The article notes that armed forces increasingly use a mission-command approach instead of relying exclusively on command-and-control structures.
Clear objective: Under this model, leaders explain the ultimate objective and the reasons behind it.
Decentralised execution: Teams are allowed to determine the most appropriate method of achieving the objective based on conditions in the field.
Corporate relevance: A similar approach may help organisations respond more quickly to uncertainty by giving employees greater autonomy and responsibility.
Implications for Indian Banking
Changing customer priorities: Banking customers are becoming more focused on returns and investment opportunities rather than relying only on the perceived safety of bank deposits.
Declining deposit share: Bank deposits reportedly declined from 58% of total Indian household savings in 2012 to approximately 35% in 2025.
Mutual-fund growth: Household investments in mutual funds reportedly increased tenfold over the same period.
Competitive pressure: Banks face growing competition from investment products and other financial-service providers for household savings.
Need for transformation: Traditional banking practices may need to evolve to address new customer expectations, digital competition and changing patterns of saving and investing.
Cautious transition: Because banking remains a highly regulated and risk-conscious industry, changes in leadership models are likely to occur gradually.
Symbolic appointments: The appointments of Bagchi and Saha may represent initial steps towards a more adaptable and externally informed model of banking leadership.
Implications for Other Industries
Indian IT services: The article identifies technology-services companies as another sector facing significant leadership challenges because of AI.
Uncertain environment: Leaders must respond to technological disruption without dismissing its importance or offering unjustified reassurance.
Outcome-oriented teams: Companies may increasingly organise work around specific outcomes rather than permanent departments and rigid reporting structures.
Future leadership: Successful leaders will need to combine technological understanding with human judgment, transparency and the ability to operate amid uncertainty.
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