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Ria Jain made post

When is Aditya Puri expected to retire and what would be his golden package as he exits the top job at HDFC Bank?

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Anu Biswas answered.
1 month ago

Aditya Puri, who moved from Citibank to set up HDFC Bank in 1994, will hang up his boots on October 26 this year when he turns 70. He will leave a legacy that is going to be hard to fill and currently Sasidharan Jagdishan and Bharucha are considered to be the top aspirants for the top job at HDFC Bank. Puri has been India’s highest paid banker.

Aditya Puri will be retiring in October with shares worth Rs.800 crore in HDFC Bank. These are shares owned by Puri by way of employee stock options over the years. Of course, this can be considered quite small when compared to the wealth that Aditya Puri, during his tenure, has created for the shareholders of HDFC Bank. He takes 77.96 lakh equity shares.

Over the last 25 years, Puri scaled up HDFC Bank organically and turned it into a profit machine with lowest NPAs in the industry. His focus continued to be on growth, asset quality and profitable operations. The market cap of HDFC Bank at Rs.587,000 crore is far higher than the market cap of its parent HDFC Ltd at Rs.309,000 lakh crore.

There are some challenges that the next CEO will have to contend with. Growth is slowing, incomes are falling and competition is emerging from new avenues. The big challenge will be to be able to retain top talent. Keeping equations with the parent will be another challenge, something Puri managed smoothly during his tenure.