InvestorQ : Can you please throw some light on the succession plan at HDFC Bank as the bank has been too dependent on the charisma of one man called Aditya Puri?
Dawn Cherian made post

Can you please throw some light on the succession plan at HDFC Bank as the bank has been too dependent on the charisma of one man called Aditya Puri?

Answer
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Dilmini Mercia answered.
8 months ago


The latest update is that India’s largest private sector bank and second largest bank by size, HDFC Bank Ltd, is likely to send a shortlist of candidates to the RBI by July-August of 2020. The idea is to seek approval for a replacement of outgoing managing director Aditya Puri. In a way, you are right that the bank has been synonymous with Aditya Puri but has also built very strong systems and processes to make the organization larger than the people. According to sources within the bank, the board of directors of HDFC Bank has already agreed upon the search firm which is going to help in the process of interviewing and shortlisting the appropriate candidates.

Company spokespersons have confirmed that the granular details pertaining to the timing and the process flow have been agreed upon. HDFC Bank had informed stock exchanges that it has already started the process of finding a successor to Aditya Puri, who has been at the helm of affairs for close to 25 years now. Puri’s tenure ends on 26 October 2020.

HDFC bank has set up a six-member committee comprising HDFC Bank chairman Shyamala Gopinath, Sanjiv Sachar, M D Ranganathan, Sandeep Parekh, Srikanth Nadhamuni and Keki Mistry to find the new chief. Puri being an interested party will not be part of the committee but considering his experience and hands on understanding of the business will act as an advisor to the search committee. The committee will evaluate internal and external candidates to ensure smooth transition. It may be recollected that back in May 2018, Aditya Puri had informed analysts that HDFC bank will start identifying his successor via an elaborate process. Of course, it will mean that the new person gets into very big shoes as the bank has been virtually synonymous with Puri over the last 25 years.