InvestorQ : How are analysts viewing HDFC Bank after the change of guard at the top?
Sneha Balasubramanian made post

How are analysts viewing HDFC Bank after the change of guard at the top?

Answer
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2 months ago


The retirement of Aditya Puri in October this year is already a known fact. With the final list boiling down to just 3 people and Puri insisting that the next CEO would be an insider, it literally boiled down to just 2 persons. Kaizad Bharucha was handling the corporate lending portfolio, and the focus for the future of HDFC Bank was clearly going to be retail.

Analysts see this transition from Puri to Sasidhar Jagdishan as a positive for the bank from a continuity point of view. Puri will move out on 26 October and Jagdishan takes over on 27 October. The reason analysts are positive is that Jagdishan has been with the bank since 1996 and has worked closely with Puri. Hence the core DNA is unlikely to shift in a big way.

The priority for Jagdishan will be for HDFC Bank to manage growth without a spurt in NPAs. He also has to manage the post moratorium situation deftly as retail loans are likely to come under maximum strain. That is where analysts believe that Jagdishan having sound knowledge of systems and risk management would be able to transition smoothly.

Jagdishan’s long association with Puri and his long-standing processes and systems means that the focus will continue to be on growth and risk management. That has been the hallmark of HDFC Bank for the last 25 years. That is a winning formula that has worked well for the bank and with Jagdishan at the helm, that looks to get perpetuated.