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Coforge Chairman OP Bhatt resigns after audit concerns

Coforge chairman O P Bhatt has resigned from the company’s board with immediate effect after an internal audit raised concerns over the handling and disclosure of information linked to its board evaluation process.

The resignation came as a surprise to investors and sent Coforge shares sharply lower in Wednesday’s trading session. The stock fell around 7% in early trade before recovering some ground. Business Standard reported the shares were down about 5.35% at ₹1,845 in morning trade.

Bhatt, a veteran banker and former chairman of the State Bank of India, stepped down as both Non-Executive Independent Director and Chairman. His resignation was accepted immediately, and he has also ceased to be part of all board committees.

The issue centres on Coforge’s Board Evaluation Exercise, an important corporate governance process through which companies assess the performance and effectiveness of their boards, committees and directors.

As part of its Q2 FY26 internal audit plan, Coforge’s internal auditor reviewed how the board evaluation exercise was conducted and how the resulting Board Evaluation Report (BER) was prepared and presented to the board. The exercise had been carried out under Bhatt’s guidance.

The audit identified concerns with the process and the disclosure of information connected with the evaluation. According to Coforge, certain material information contained in or relating to the BER, including information concerning the chairman’s performance evaluation, had not been fully disclosed when the report was presented to the board.

The findings prompted the board to seek an explanation from Bhatt.

Bhatt defended his conduct, maintaining that he had acted in good faith and had discharged his responsibilities independently and objectively, keeping the interests of the company in mind.

However, while the board was still examining his response, Bhatt decided to resign.

In his resignation communication, Bhatt said that remaining on the board while there was disagreement over his actions during the evaluation process would not be helpful to the effective functioning of the board. He also made it clear that the matters connected with the internal audit were the reasons for his resignation.

Coforge has said there were no other material reasons behind Bhatt’s departure.

The company has moved quickly to ensure there is no leadership vacuum. Vivek Sharma, who is currently a Non-Executive Independent Director on the board, has been appointed as interim chairperson. He will hold the position until January 31, 2027, unless an earlier change is made.

The development has put corporate governance back in focus at the mid-sized IT services company. While board evaluations are routine exercises, they are closely watched because they are designed to provide an independent assessment of how a company’s leadership and oversight mechanisms are functioning.

The questions raised by the audit also put attention on board accountability, transparency and disclosure practices.

The market reaction reflected that uncertainty. Coforge shares dropped more than 6% during Wednesday’s intraday trading, with the stock falling about 7% at one point. Despite the immediate sell-off, the shares had gained more than 60% over the previous six months, according to Financial Express.

Bhatt’s exit is significant given his background and position at Coforge. Before joining the company’s board, he had a long career in banking and served as chairman of SBI. His departure consequently marks an important change in Coforge’s board leadership.

The company will now have to manage the transition while addressing questions surrounding the board evaluation report. How the board handles the audit findings and strengthens its internal governance processes could become an important issue for shareholders in the months ahead.

At the same time, the available information does not indicate a change in Coforge’s core business operations. The immediate issue is centred on the board evaluation process and the subsequent review of the concerns raised by the internal auditor.

The priority now is to restore confidence around its governance framework while ensuring that the board continues to function smoothly under interim chairperson Vivek Sharma.

The episode serves as a reminder that for listed companies, governance is closely tied to investor confidence. Even when the underlying business remains unaffected, questions around transparency, board oversight and disclosure can quickly influence market sentiment.

 

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Tewolde takes charge as Air India CEO

Tewolde Gebremariam has taken charge as the new chief executive officer and managing director of Air India, stepping into the top job at a critical point in the Tata Group-owned airline’s transformation.

The former Ethiopian Airlines chief succeeds Campbell Wilson, who led Air India through its return to the Tata Group, the merger with Vistara, fleet expansion and a major brand overhaul. Gebremariam now inherits an airline with ambitious growth plans but also mounting financial losses, operational challenges and heightened safety scrutiny.

His immediate focus is expected to be on making Air India’s everyday operations more reliable while strengthening safety and restoring passenger confidence. The new CEO has sought employee support as he begins the task of rebuilding the airline, with operational disruptions and service consistency likely to remain key priorities.

Safety is expected to be at the heart of his agenda. The June 2025 Air India Boeing 787 crash in Ahmedabad, which killed 260 people, brought intense scrutiny of the airline’s safety systems and operating procedures. Regulatory concerns and compliance issues have added to the pressure on the management to strengthen oversight and accountability.

Gebremariam brings nearly four decades of aviation experience to Air India. He joined Ethiopian Airlines in 1985 and eventually became its group CEO, a position he held for more than a decade. Under his leadership, the airline expanded its fleet, international network, passenger traffic and infrastructure, establishing itself as one of Africa’s leading carriers.

That experience will be closely watched as he takes on Air India’s much larger and more complex turnaround. The airline has placed orders for more than 500 aircraft and is seeking to build a stronger global network. Managing this expansion without worsening financial pressure will be one of his biggest challenges.

Air India’s financial performance remains a major concern. The Air India Group reported losses of more than $2 billion in the financial year ended March 2026. The airline has remained loss-making since the Tata Group took control in 2022, increasing pressure to improve revenues while keeping costs under control.

Several external factors have made the situation more difficult. Higher fuel costs, geopolitical tensions and restrictions on international airspace have affected flight operations and forced airlines to take longer routes. Air India has also reviewed parts of its international network and adjusted services in response to changing market conditions.

The airline is simultaneously undertaking a major fleet modernisation programme. Air India has begun introducing new aircraft while refurbishing older planes, but supply-chain constraints involving aircraft components, seats and other equipment have slowed some upgrades.

The success of the turnaround will be judged by more immediate issues. Punctual flights, smoother baggage handling, better communication during disruptions, cleaner aircraft and consistent service will be crucial in rebuilding Air India’s reputation.

The airline is also facing stronger competition as India’s aviation market expands. IndiGo remains a dominant domestic player, while international airlines continue to compete for India’s growing long-haul travel market. Air India’s ability to combine its extensive international ambitions with dependable operations will be crucial to its future position.

For Gebremariam, the challenge is to balance growth with stability. The airline cannot afford to lose sight of operational discipline while pursuing its ambitious fleet and network expansion.

 

His experience at Ethiopian Airlines gives him a strong background in building and managing a major carrier. But Air India presents a different set of challenges, from its financial losses and ageing aircraft to safety concerns and the expectations surrounding the Tata Group’s aviation ambitions.

 

The new CEO will also need to strengthen coordination across Air India’s wider group operations following the Vistara integration. Aligning employees, systems and service standards across the expanded airline will be important as the carrier seeks to create a more consistent experience for passengers.

 

The coming months will therefore be an important test of Gebremariam’s leadership. Investors, employees and passengers will be looking for visible improvements in reliability, safety and service, while the management will have to keep the airline’s long-term growth plans on track.

 

For Air India, the priority now is turning years of transformation plans into measurable results. Under its new CEO, the airline faces the difficult task of becoming not just a larger carrier, but a safer, more reliable and financially sustainable one.

 

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Kenyan President orders Tata Chemicals to exit

Kenya’s President William Ruto has ordered Tata Chemicals to leave the country, escalating a dispute over the Indian company’s long-running soda ash operations at Lake Magadi.

Ruto said Tata Chemicals had benefited from Kenya’s natural resources without generating enough economic value for the local community in Kajiado County. He has indicated that new investors should take over the operation and build processing facilities in Kenya.

The directive has put one of Tata Group’s longest-running overseas operations under fresh pressure and raised questions about the future of Indian investments in Kenya.

The dispute centres on Tata Chemicals Magadi Limited (TCML), which operates the Lake Magadi soda ash business. The company produces soda ash from trona, a naturally occurring mineral found around the lake. Soda ash is widely used in making glass, soaps, detergents and other industrial products.

Commercial soda ash production at Lake Magadi dates back to 1911, making it one of Kenya’s oldest mining and industrial operations. Tata Chemicals acquired the business in 2005 and has operated it for more than two decades.

Ruto’s criticism focuses largely on what Kenya gains from the operation.

Speaking during a visit to Kajiado County, the president said the company had held mining rights for many years but had not done enough to develop industries around the resource. He argued that Kenya should move beyond exporting raw or minimally processed minerals and create more jobs and manufacturing opportunities locally.

Ruto said any new investor brought into the Magadi area should establish a glass factory as well as a chemical processing facility. The objective, according to the Kenyan government, is to retain a larger share of the value generated from the country’s natural resources inside Kenya.

The latest order follows government action that began in July. Kenya’s mining ministry had directed Tata Chemicals Magadi to suspend mining operations and subsequently halted soda ash exports while regulatory and compliance issues were reviewed.

Tata Chemicals, however, has pushed back against any suggestion that it has failed to comply with Kenyan regulations.

The company said on Friday that its Kenyan subsidiary is fully compliant with regulatory requirements and has submitted the information and documents requested by the government. It is now awaiting further communication from Kenya’s Ministry of Mining as it seeks to resolve the matter through the appropriate regulatory process.

The contrasting positions leave the future of the Magadi operation uncertain.

Tata Chemicals has stressed that the business has contributed to Kenya’s economy and that it remains committed to its employees, the local community and the country. The company has also indicated that it wants to engage constructively with the authorities rather than walk away from the operation.

The stakes are significant because soda ash is an important Kenyan export.

Government data cited by the Associated Press showed that Kenya exported 254,779 tonnes of soda ash worth $56.9 million in the year to July 2025. The Magadi operation is a major part of that industry and has long been an important source of employment and export earnings.

A forced exit could therefore have consequences beyond Tata Chemicals. Any prolonged suspension could affect workers, suppliers, transport operators and other businesses linked to the soda ash supply chain.

At the same time, Kenya’s position reflects a wider push by African governments to secure greater local benefits from foreign-owned mining and industrial projects.

In Kenya, the issue is not simply about who operates Lake Magadi. It is about how the country uses its natural resources and whether more processing, manufacturing and employment can be created locally rather than having raw materials leave the country for overseas markets.

That approach could have implications for other foreign investors as well.

The Tata Chemicals dispute comes after Kenya cancelled major projects involving other Indian companies, including an airport expansion agreement involving the Adani Group. Indian companies have a long-standing commercial presence in Kenya, with investments spanning infrastructure, manufacturing, banking, telecommunications and consumer businesses.

The latest confrontation could therefore attract attention among Indian companies assessing opportunities in the East African market, particularly in sectors linked to natural resources and infrastructure.

Tata Chemicals has not indicated that it is voluntarily withdrawing from Kenya. Instead, it has maintained that it has met the regulatory requirements and is waiting for the authorities to review its submissions. That leaves room for further discussions between the company and the Kenyan government.

The eventual outcome could range from a negotiated resolution to a change in the structure or ownership of the Magadi business.

The future of a century-old soda ash operation hangs in the balance.

Kenya wants the resource beneath Lake Magadi to generate more jobs, factories and economic activity at home. Tata Chemicals says it has complied with the country’s rules and remains committed to resolving the issue.

 

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Anil Chakravarthy named Adobe’s new CEO

Adobe has named Indian-origin executive Anil Chakravarthy as its next president and chief executive officer, handing him the responsibility of leading the software giant through a period of rapid change driven by artificial intelligence.

Chakravarthy will take over as CEO on December 1, 2026, succeeding Shantanu Narayen, who has led Adobe for more than 18 years. Narayen will move into the role of executive chair and will continue working with the company during the leadership transition.

The appointment comes at an important moment for Adobe. The company behind widely used products such as Photoshop, Acrobat and Illustrator is facing a technology landscape that is changing quickly as generative AI becomes increasingly capable of creating and editing images, videos, documents and other digital content.

Chakravarthy, who currently serves as president of Adobe’s Customer Experience Orchestration business and oversees worldwide field operations, will also join Adobe’s board when he assumes the CEO role.

His appointment represents an internal transition for Adobe. Chakravarthy joined the company in 2020 after serving as chief executive of enterprise software company Informatica. At Adobe, he has held senior positions across its digital experience business and global operations.

His career also includes senior leadership roles at Symantec and VeriSign, along with experience at consulting firm McKinsey & Company. He holds an engineering degree from IIT-BHU, formerly known as IIT Varanasi, and later earned a PhD from the Massachusetts Institute of Technology.

That combination of technology and business experience is expected to be particularly relevant as Adobe works to adapt its products and business model to the rise of AI.

Artificial intelligence has become central to Adobe’s strategy. The company has introduced AI capabilities across its creative and digital experience products, allowing users to generate, edit and manipulate content using natural-language instructions and other AI-powered tools.

The shift has also created new competitive pressures. A growing number of startups and established technology companies are developing AI-powered creative tools that can perform tasks that once required specialised software and considerable technical skill.

Companies such as Canva and Figma have also expanded their presence in areas traditionally dominated by Adobe. Generative AI is lowering the barriers to content creation, forcing established software companies to show that their products remain valuable even as new tools become easier to use.

Adobe has been trying to respond by integrating AI directly into its existing products rather than treating the technology as a separate offering. Its Firefly family of generative AI tools has become a key part of that strategy.

His challenge will be to build on those efforts while keeping Adobe’s large base of professional and enterprise customers engaged.

The leadership change follows a period of uncertainty around Adobe’s position in the market. The company’s shares have faced pressure as investors assess the potential impact of AI on its traditional creative software business. Adobe’s stock has fallen significantly in 2026, adding to concerns about whether the company can maintain its strong position as AI-powered alternatives become more capable.

At the same time, Adobe has continued to report demand for its AI-powered products and has raised its annual profit outlook earlier this year. The company therefore enters the leadership transition with both opportunities and challenges.

Narayen’s move to executive chair means his experience will remain available to Adobe even after he leaves the CEO position. He has overseen one of the most significant transformations in the company’s history, particularly its shift from selling traditional packaged software to a subscription-based cloud model.

That transformation helped turn Adobe into a major recurring-revenue software business. Under Narayen, products such as Photoshop and Acrobat became part of the company’s broader Creative Cloud and Document Cloud ecosystems, while Adobe expanded significantly into digital marketing and customer experience services.

The next transformation is likely to be shaped by AI.

For Chakravarthy, this means balancing innovation with the needs of Adobe’s existing customers. Professional designers, photographers, marketers and businesses depend heavily on Adobe’s software, and the company will need to make AI tools useful without disrupting the workflows that have made its products industry standards.

The new CEO will also inherit a company operating in a market where the definition of creative software is changing. AI tools can now generate images, videos and designs in seconds, raising questions about how traditional creative applications will evolve.

Chakravarthy’s experience in enterprise technology and customer experience could become an important part of that transition. His current role involves helping businesses use Adobe’s technology to manage customer interactions in an increasingly AI-driven digital environment.

The CEO succession also has significance in India, where Chakravarthy’s appointment adds to the growing list of Indian-origin executives leading major global technology companies.

For Adobe, however, the immediate focus will be less on symbolism and more on execution. The company is entering a new phase in which its ability to turn artificial intelligence into sustainable growth could determine its position in the next generation of creative and enterprise software.

As Chakravarthy prepares to take charge, Narayen will remain involved from the boardroom. That gives Adobe continuity while putting a new leader at the centre of its next big challenge.

The question now is whether Chakravarthy can help Adobe make the same kind of successful transition with AI that Narayen achieved with cloud computing nearly two decades ago.

 

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Tata Sons chairman search delayed over trust approval

The search for the next Tata Sons chairman has hit a roadblock after the Sir Ratan Tata Trust (SRTT) was unable to nominate its representative to the panel tasked with finding Natarajan Chandrasekaran’s successor.

The delay comes more than two weeks after Chandrasekaran announced that he would not seek another term as chairman of Tata Sons. His current term is scheduled to end in February 2027, giving the Tata Group several months to complete the succession process. However, a regulatory restriction affecting the Sir Ratan Tata Trust has now slowed the exercise.

SRTT is one of the 13 charitable trusts that together form the majority shareholder in Tata Sons, the holding company of the Tata Group. The Tata Trusts collectively own about 66 per cent of Tata Sons, making their participation important in any major leadership decision involving the group.

The immediate problem is that SRTT is currently restricted from conducting its internal meetings because of an ongoing regulatory probe. Without being able to hold the necessary meeting, the trust cannot formally select and nominate its representative to the five-member joint search panel.

The Tata Trusts have now approached the Maharashtra Charity Commissioner seeking permission for SRTT to nominate its representative despite the restrictions. The decision of the Charity Commissioner is awaited. Until that approval comes through, the chairman succession process is unlikely to move ahead as planned.

The search panel was announced as part of the effort to identify Chandrasekaran’s successor. His decision not to continue as Tata Sons chairman came on August 12 and was unexpected, raising questions about the group’s succession planning and the transition at the top of one of India’s largest business conglomerates.

The delay is significant because the chairman of Tata Sons plays a central role in determining the broader strategic direction of the Tata Group. The group has businesses spanning automobiles, technology, steel, aviation, consumer products, financial services and other sectors. A leadership transition at the holding company therefore carries importance beyond the appointment itself.

The latest development also brings attention to the unusual ownership structure of Tata Sons. Unlike many large corporations, the company is controlled largely through charitable trusts. This structure has historically helped fund philanthropic activities while also giving the trusts substantial influence over the group’s corporate affairs.

The current regulatory hurdle has already affected Tata Sons in another way. The company’s annual general meeting was adjourned last month after it failed to achieve the required quorum. The absence of the necessary trust representation contributed to the difficulty in conducting the meeting. Tata Sons has since received a three-month extension from the Registrar of Companies to hold its AGM.

The next important date could be September 17, when the Tata Sons board is scheduled to meet. The board will be closely watched for developments on the chairman succession process as well as other matters arising from Chandrasekaran’s planned departure.

For now, Chandrasekaran remains legally entitled to continue as Tata Sons chairman until the end of his existing term in February. That provides some time for the group to resolve the issue, but the delay puts greater focus on how quickly the trusts and the company can complete the formal succession exercise.

The situation also puts attention on Noel Tata, chairman of Tata Trusts, as the group navigates the leadership transition. Any prolonged uncertainty could increase pressure on the Trusts to provide clarity to investors, regulators and other stakeholders about the group’s leadership plans.

The issue is particularly relevant as the Tata Group continues to play a major role in India’s manufacturing and technology ambitions. The conglomerate has been expanding its presence in areas such as electronics manufacturing, electric vehicles and other strategic industries. Stable leadership at Tata Sons will be important as these businesses move into their next phase of growth.

The succession question is therefore not simply about finding a replacement for Chandrasekaran. It also involves balancing the interests of Tata Sons, its board and the charitable trusts that control the company. The latest regulatory hurdle has brought that complicated relationship into sharper focus.

Neither Tata Sons nor Tata Trusts has so far issued an immediate public response to the latest reports. For the moment, the chairman succession process remains in limbo, with the Maharashtra Charity Commissioner’s decision emerging as a key step.

With Chandrasekaran’s term ending in February 2027, the Tata Group still has time to complete the transition. But the latest delay underlines the challenges involved in managing leadership succession within a corporate structure where charitable trusts hold significant ownership and influence.

 

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John Ternus takes Apple helm as AI challenges grow

John Ternus will take charge as Apple’s chief executive on September 1, marking the end of Tim Cook’s 15-year tenure and opening a new chapter for the technology giant.

Ternus, Apple’s senior vice-president of Hardware Engineering, will become the company’s eighth CEO. Cook will move to the role of executive chairman, allowing Apple to retain his experience while handing day-to-day leadership to a new generation.

The leadership transition comes at an important moment for Apple. The company remains one of the world’s most valuable businesses, with a huge global customer base and strong positions in smartphones, computers, wearables and digital services. But the technology industry is changing rapidly, with artificial intelligence emerging as a major force shaping the future of consumer technology.

Ternus will inherit a financially powerful company, but also one facing questions over its AI strategy, growth prospects, China business and global supply chain.

An Apple veteran takes charge

Ternus has spent nearly 25 years at Apple after joining the company in 2001. He became senior vice-president of Hardware Engineering in 2021 and has played an important role in the development of several of Apple’s major products.

His work has included the iPhone, iPad, Mac and Apple Watch, as well as other hardware. He has also been closely involved in Apple’s transition to its own chips, which has given the company greater control over the performance and design of its devices.

His appointment signals a preference for continuity. Instead of bringing in an outsider, Apple has chosen an executive who understands its products, engineering teams and culture from within.

That experience could be valuable as Apple attempts to connect artificial intelligence more closely with its hardware.

Ternus, however, will now have responsibilities far beyond product development. As CEO, he will have to oversee Apple’s global operations, manage relations with governments, respond to regulatory challenges and guide the company’s long-term business strategy.

AI becomes the biggest challenge

Artificial intelligence is likely to be the most closely watched area of Ternus’ leadership.

Apple has already introduced Apple Intelligence, bringing AI-powered features to the iPhone, iPad and Mac. However, the company has moved more cautiously than several technology rivals in the generative AI race.

Companies such as Google, Microsoft, Meta and OpenAI have invested heavily in AI systems, infrastructure and consumer products. Apple, meanwhile, has faced questions over delays in delivering more advanced AI capabilities for Siri.

For Ternus, strengthening Apple’s AI position will be a key priority.

The company does not necessarily need to compete by creating another standalone chatbot. Its biggest advantage is its ecosystem of devices and services. The challenge will be to make AI useful across that ecosystem, from smartphones and computers to wearables and other connected products.

Apple will also want to maintain its focus on privacy and ease of use. The company has long promoted privacy as an important part of its products, and its AI strategy will need to balance powerful new features with those commitments.

Ternus’ hardware background could prove useful. AI increasingly depends on specialised chips and efficient computing, areas where Apple has invested heavily in recent years.

China remains a difficult equation

China will present another major challenge for the new CEO.

The country remains important to Apple as both a manufacturing centre and a consumer market. Although Apple has expanded production in countries including India and Vietnam, China continues to play a significant role in its global supply chain.

Apple must also deal with rising geopolitical and trade tensions. US policies have encouraged companies to reduce dependence on Chinese manufacturing, while relations between Washington and Beijing remain uncertain.

The Chinese smartphone market has become increasingly competitive for Apple as domestic manufacturers have strengthened their products and gained consumer attention.

Ternus will therefore have to balance manufacturing diversification with the realities of running a complex global supply chain. Any major shift away from China will take time because Apple depends on an enormous network of suppliers and manufacturing partners.

Cook’s move to executive chairman could provide some continuity in this area. His experience in dealing with governments, suppliers and international business partners will remain useful as Ternus takes over.

Cook leaves behind a transformed Apple

Ternus is taking charge of an Apple that is much larger than the company Cook inherited in 2011.

During Cook’s leadership, Apple expanded beyond the iPhone with products such as the Apple Watch and AirPods. It also built a major services business covering areas such as the App Store, Apple Music and iCloud.

Apple also developed its own silicon for Macs and other devices, giving the company greater control over its hardware and software.

The company’s market value rose dramatically during Cook’s tenure, reaching about $4 trillion. Apple now has more than 2.5 billion active devices worldwide, creating a vast ecosystem for new products and services.

Services have become an important source of recurring revenue, helping Apple reduce its dependence on hardware sales alone.

Cook’s tenure therefore left Ternus with a strong foundation. But maintaining that growth will be harder as smartphone markets mature and competition increases.

First major test arrives quickly

Ternus will have little time to settle into his new role before facing his first major product test.

Apple is scheduled to hold its next major iPhone event on September 9, only days after Ternus becomes CEO. The company is expected to introduce its latest iPhone lineup, with particular attention on the possibility of a foldable iPhone.

A foldable device would represent one of the biggest changes to the iPhone’s design in years. It could also open a new premium segment and give Apple another opportunity to drive hardware growth.

The launch will be closely watched because it will be the first major iPhone event under Ternus’ leadership. Investors and consumers will be looking for signs of how the new CEO intends to shape Apple’s product strategy.

Defining the next Apple era

Ternus takes over at a time when Apple’s traditional strengths are being tested by rapid changes in technology.

The company must continue growing the iPhone business, strengthen its artificial intelligence capabilities, develop new products and manage increasingly complicated supply chains. At the same time, it faces intense competition and growing regulatory scrutiny across major markets.

His engineering background gives Ternus a deep understanding of Apple’s products. His bigger challenge will be proving that he can translate that expertise into a broader vision for the company.

Cook leaves behind a business that has grown enormously in size, value and global reach. Ternus must now build on that success while ensuring Apple does not fall behind in the next major technology shift.

The leadership change is therefore more than a change of CEO. It comes as the industry moves from the smartphone era towards an AI-driven future.

Ternus’ task will be to preserve what has made Apple successful while giving the company a clear path into that future. His ability to close the AI gap, manage China-related challenges and deliver the next wave of products will determine whether Apple can maintain its position at the top of the technology industry.

 

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HDFC Bank begins search for Jagdishan’s successor

HDFC Bank is preparing for a major leadership transition after managing director and chief executive officer Sashidhar Jagdishan decided not to seek another term and will retire on October 26, 2026.

The decision brings an end to nearly six years of Jagdishan’s tenure as head of India’s largest private-sector bank and has prompted the lender’s board to accelerate the search for his successor. The next CEO will take charge at a crucial stage for the bank, which continues to work through the integration and growth challenges following its merger with HDFC Ltd.

Jagdishan communicated his decision to the board on August 29. The board had sought to persuade him to continue, but he remained firm about not seeking reappointment. The development ends uncertainty over whether he would remain at the bank beyond his current term.

Jagdishan became HDFC Bank’s managing director and CEO in October 2020, succeeding long-serving chief Aditya Puri. He had joined the bank in 1996 and rose through its finance operations before eventually taking charge of the institution.

His tenure was defined by the landmark merger of HDFC Ltd with HDFC Bank in 2023. The transaction brought India’s largest housing finance company into the banking group and significantly increased HDFC Bank’s scale.

The enlarged lender has since been focused on integrating operations while seeking to unlock the benefits of the merger. The combination created opportunities through a wider customer base, housing finance capabilities and cross-selling potential. However, investors have continued to watch whether these advantages can translate into stronger growth and improved returns.

Jagdishan’s exit comes amid increased scrutiny of HDFC Bank’s leadership and governance. Questions emerged following the departure of former chairman Atanu Chakraborty earlier this year. An independent review did not substantiate concerns raised around the bank’s governance.

The board also took action against Jagdishan and two other senior executives over an issue involving the pricing of large deposits. The development brought additional attention to the bank’s internal decision-making and governance practices.

The succession process is now expected to be closely watched. HDFC Bank is considering both internal and external candidates, with deputy managing director Kaizad Bharucha emerging as one of the prominent internal contenders.

Bharucha has spent several years with the bank and has experience across its retail and wholesale banking operations. His familiarity with the lender’s business could make an internal transition smoother, although the final decision will rest with the board and will require regulatory approval.

An external candidate could also enter the race. The Reserve Bank of India plays an important role in the appointment of CEOs and managing directors at banks, making the regulatory process a key part of the transition.

The leadership change has also come at a challenging time for HDFC Bank’s shares. The stock has faced pressure this year amid concerns over growth, post-merger performance, governance and shareholder returns. The retirement announcement, however, was followed by gains in the stock, suggesting that some investors may view the leadership uncertainty being resolved as a positive development.

The new CEO will inherit a bank with enormous scale and a strong franchise, but expectations will be equally high. A key priority will be extracting greater value from the HDFC Ltd merger while improving growth and profitability.

Maintaining asset quality will also remain important. With a vast loan book and exposure across retail, corporate and commercial banking, the bank will need to balance expansion with prudent risk management.

The incoming leadership will also be expected to strengthen governance and provide greater clarity on the bank’s long-term strategy. Rebuilding investor confidence and improving shareholder returns are likely to form an important part of that agenda.

The transition marks the beginning of a new phase. Jagdishan guided the lender through the pandemic and one of the biggest mergers in India’s financial sector. His successor will now have the task of turning that expanded scale into sustainable growth.

The board has only a limited window to complete the selection and ensure a smooth handover before Jagdishan retires in October. The eventual appointment will not only determine who leads the bank but could also shape its strategy, performance and standing in India’s highly competitive banking sector over the coming years.

 

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Sandhya Devanathan joins OpenAI

Meta’s India and Southeast Asia chief Sandhya Devanathan is leaving the social media company after more than a decade to join OpenAI, marking a significant movement of senior technology talent from social media towards artificial intelligence.

Devanathan will join OpenAI as vice-president for Southeast Asia and Australia in October. Based in Singapore, she will report to Kiran Mani, OpenAI’s managing director for Asia-Pacific. The newly created position will make her the company’s senior-most executive for the two markets.

Her responsibilities will extend beyond business growth. Devanathan will oversee consumer expansion, enterprise adoption, partnerships, regulatory engagement and operations across Southeast Asia and Australia. She will also work with businesses, institutions and governments to encourage wider adoption of OpenAI’s artificial intelligence products.

The move follows Devanathan’s decision to step down from Meta after a career spanning more than 10 years with the company. She announced her departure in a LinkedIn post on Friday, describing it as a difficult but important career decision. She did not initially disclose where she would be moving, before OpenAI confirmed the appointment.

Devanathan joined Meta in 2016, when the company’s Singapore operation was considerably smaller. During her tenure, she worked across ecommerce and gaming businesses in the Asia-Pacific region and helped expand Meta’s operations in markets including Singapore and Vietnam.

She later took charge of Meta’s Asia-Pacific gaming business before becoming Meta’s India head in 2023. Her responsibilities were subsequently expanded to include Southeast Asia, placing her at the centre of the company’s business strategy across several fast-growing digital markets.

Her departure comes at an important moment for Meta in India. The company has faced increasing scrutiny from Indian authorities over online safety, content moderation and the handling of material on its platforms.

Earlier this month, Meta apologised after Instagram mistakenly restricted a post by Prime Minister Narendra Modi. The incident led the Indian government to summon senior Meta executives, including Chief Global Affairs Officer Joel Kaplan, for an explanation.

Meta has also faced questions over child safety on its platforms. Indian authorities sought an explanation from the company after a report alleged that Instagram advertisements were being used to offer access to child sexual abuse material. Meta said it had removed the offending advertisements and accounts and disputed suggestions that it knowingly targeted such content.

The company said it had removed about 160,000 accounts in India over a six-month period after detecting signals associated with child-exploitative activity. The episode has added to broader concerns around content moderation and platform safety in one of Meta’s largest markets.

Following Devanathan’s exit, Meta India’s managing director Arun Srinivas will report directly to Benjamin Joe, the company’s vice-president for Asia-Pacific. Srinivas is expected to continue leading Meta’s India operations as the company reorganises its regional leadership structure.

For OpenAI, the appointment comes as the ChatGPT maker significantly expands its presence across Asia-Pacific. The company has opened offices in Singapore, Tokyo, Seoul, Sydney and Delhi during the past two years and is also expanding its operations in India.

OpenAI recently appointed former Uber India and South Asia president Prabhjeet Singh as its managing director for India. The appointment strengthened the company’s leadership in what has emerged as one of its most important international markets.

The company has been aggressively building its India business as ChatGPT adoption grows. OpenAI said earlier this year that it had more than 100 million weekly active users in India, with a large proportion using its free or lower-priced Go plans.

It has also announced plans to introduce advertising on ChatGPT’s free and Go tiers in India, initially involving 50 brands and partnerships with major advertising groups. The move signals a growing effort to turn its large Indian user base into a sustainable commercial business.

Devanathan’s appointment fits into that wider expansion strategy. Her experience working with consumers, businesses and regulators across India and Southeast Asia could help OpenAI navigate markets where government engagement and local partnerships are becoming increasingly important to the growth of artificial intelligence.

The shift also highlights the intensifying competition for senior technology talent. Meta has been investing heavily in artificial intelligence and building its own AI capabilities, while OpenAI is expanding beyond ChatGPT into enterprise services, partnerships and regional operations.

The two companies are therefore competing not only for users and technology but also for experienced executives who understand the fast-changing digital markets of Asia.

Devanathan’s move from Meta to OpenAI reflects that changing technology landscape. As artificial intelligence becomes increasingly central to consumer technology and business services, experienced leaders with knowledge of regional markets are becoming valuable assets.

 

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Leaders

Warsh Flags Inflation at Jackson Hole speech

Federal Reserve Chair Kevin Warsh delivered his closely watched Jackson Hole speech on Friday, with investors looking for signals on the future direction of US interest rates as inflation remains above the central bank’s target.

The speech marked Warsh’s first major appearance at the annual economic policy symposium since becoming Fed chair. His remarks came at a crucial point for the US economy, with policymakers divided over whether interest rates need to remain high to control inflation or whether monetary policy should begin becoming less restrictive.

The Federal Reserve has kept its benchmark interest rate in the 3.50%-3.75% range. However, inflation remains well above the Fed’s 2% target, making the next policy decision increasingly difficult.

The latest inflation figures have complicated expectations for monetary easing. The personal consumption expenditures price index, which the Fed closely monitors when setting monetary policy, rose 3.7% in July from a year earlier.

Core PCE inflation, which excludes volatile food and energy prices, also remained elevated at 3.3%.

The numbers indicate that inflation has not yet returned to a level that would allow the Federal Reserve to comfortably declare victory. While price pressures have eased from their earlier peaks, progress towards the 2% target has slowed.

That leaves Warsh facing a difficult choice. Keeping rates high for longer could help bring inflation under control, but it could also place additional pressure on consumers, businesses and economic growth.

The debate has also exposed differences among Federal Reserve policymakers.

Three officials dissented at the July policy meeting, supporting a 25-basis-point increase in the benchmark rate. Their position underlined concerns that current monetary policy may not be restrictive enough to contain inflation.

Other policymakers have taken a more cautious approach, arguing that the Fed needs to assess incoming economic data before deciding whether another rate increase is necessary.

The disagreement has made Warsh’s communication particularly important. Markets are looking for greater clarity on how the new Fed chief weighs inflation against employment and growth when setting interest rates.

The US bond market has become an increasingly important part of the monetary-policy discussion.

Long-term Treasury yields have remained elevated as investors assess inflation risks, government borrowing requirements and the country’s large fiscal deficit. The 30-year Treasury yield has moved around the 5.3% level, adding to concerns about long-term borrowing costs.

Higher Treasury yields can tighten financial conditions even if the Federal Reserve does not raise its benchmark rate.

Mortgage rates, corporate borrowing costs and other forms of credit are influenced by long-term government bond yields. As a result, elevated yields can make borrowing more expensive for households and businesses and potentially slow economic activity.

The Treasury Department has also been taking steps to manage conditions in the long-term government bond market.

Treasury buybacks of longer-maturity securities are intended to improve market liquidity and manage the supply of outstanding debt. The measures have attracted attention because they come as investors demand higher returns for holding long-term US government bonds.

The developments highlight the increasingly complicated relationship between monetary policy, government borrowing and financial markets.

The Federal Reserve sets short-term interest rates, while long-term Treasury yields are determined by a broader combination of inflation expectations, economic growth, government debt supply and investor demand.

Investors entered the Jackson Hole meeting with expectations for the Fed’s next move still uncertain.

Earlier hopes for interest-rate cuts have been challenged by stronger inflation readings. At the same time, concerns about the economic outlook have prevented markets from completely ruling out monetary easing.

Warsh has also taken a different approach to forward guidance. Rather than offering markets a detailed roadmap for future interest-rate decisions, he has emphasised the importance of responding to economic data as it emerges.

That approach gives the Federal Reserve greater flexibility but makes it harder for investors to predict the timing and scale of future rate moves.

His Jackson Hole speech was therefore being closely watched for clues about the broader policy framework that will guide the Fed in the months ahead.

The Fed’s decisions have consequences well beyond the US economy.

Changes in US interest rates can influence the dollar, global bond yields, stock markets and commodity prices. Higher US rates can attract money into dollar-denominated assets while increasing borrowing costs internationally.

Gold prices are also affected by expectations for US monetary policy. When Treasury yields and interest rates rise, gold can become less attractive because the precious metal does not generate interest income. Conversely, expectations of lower rates can support demand for gold.

Warsh’s Jackson Hole appearance comes at an important stage of his tenure. The Federal Reserve is under pressure to restore inflation to its 2% target while avoiding unnecessary damage to economic growth and employment.

The challenge is complicated by high Treasury yields, uncertainty over government borrowing and differing views within the central bank itself.

Markets will now scrutinise upcoming inflation, employment and economic-growth data for evidence of where monetary policy is heading.

 

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Leaders

Bill Gates warns AI could reshape jobs and society

Microsoft co-founder Bill Gates has warned that the world is entering a turbulent phase of the artificial intelligence revolution, with AI potentially reshaping jobs, economies, education and human relationships much faster than governments and societies are prepared to handle.

In a new essay, Gates said he remains convinced that artificial intelligence could deliver enormous benefits in healthcare, science and education. But he is increasingly concerned that the technology is advancing so quickly that the negative consequences could arrive before adequate safeguards are in place.

Gates’ biggest concern is the effect of AI on employment. He expects the technology to move beyond assisting workers and increasingly perform entire tasks on its own. Areas such as law, customer service, medicine, software development and manufacturing could see significant changes over the next decade.

The shift could be especially difficult for entry-level and mid-level workers. Young people entering the workforce may find fewer opportunities to gain experience, while employees whose jobs disappear may struggle to move into completely different careers.

Gates also believes the disruption will eventually reach beyond traditional office jobs. As robotics improves, machines could become capable of performing more physical tasks. He has pointed to construction and hospitality as sectors where increasingly capable robots could begin competing with human workers before the end of the decade.

That possibility has led Gates to suggest an unusual policy idea: creating a category of “Human Reserved” jobs.

Under this approach, governments or societies could decide that certain occupations or tasks should remain primarily with people even when AI or robots are technically capable of doing them. The idea would be similar to protecting a nature reserve from development.

Gates believes healthcare and caregiving could be among the areas where human involvement should remain particularly important. A machine may be able to deliver information or perform a task efficiently, he argues, but there are situations where compassion, trust and emotional understanding matter just as much as technical ability.

The concept could also be temporary. Some jobs might be protected for a period of years or decades to give workers time to adapt rather than allowing sudden automation to eliminate entire categories of employment.

Gates has also proposed changing the tax system to deal with the economic impact of automation. He has suggested taxes on AI use, including AI “tokens”, as well as taxes on robots.

His reasoning is that the current system can make replacing employees with machines financially attractive. Businesses pay payroll-related taxes when they employ people, while investment in machines can receive different tax treatment. A tax on automation could slow the pace of replacement while generating money for worker retraining and stronger social safety nets.

Gates accepts that such measures would represent a major change in economic policy. But he believes governments should act before large-scale job losses become a reality rather than trying to respond after workers have already been displaced.

His concerns extend beyond employment. Gates has warned that increasingly powerful AI systems could be misused for cyberattacks and other harmful activities. The technology could allow malicious individuals to carry out sophisticated operations more quickly and at a lower cost.

He has also raised concerns about AI and biotechnology, particularly the possibility that advanced systems could make dangerous biological activity easier for bad actors.

Another area of concern is the effect of AI on children and human relationships. AI companions and increasingly personalised digital systems could become attractive substitutes for real-world interaction. Gates worries that excessive dependence on such technology could affect emotional development, social skills and the ability to think independently.

Education presents a similar dilemma. AI tutors could make learning more accessible and provide students with instant explanations. At the same time, relying on AI to solve every difficult problem could weaken critical thinking if students stop working through problems themselves.

Despite his warnings, Gates is not calling for an end to artificial intelligence. He continues to see the technology as potentially transformative in positive ways.

AI could help doctors identify diseases, accelerate scientific research, improve public services and expand access to education. In developing countries, it could also provide farmers and communities with useful information and services that are currently difficult to access.

The challenge, Gates argues, is ensuring that those benefits are widely shared while limiting the damage caused by rapid automation.

He believes governments need new institutions and policies specifically designed for the AI era. Existing rules were largely created before systems capable of performing complex cognitive tasks became widely available, leaving important gaps in areas such as employment, safety, education and accountability.