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Business News/ Companies / People/  ING Vysya MD Shailendra Bhandari quits; Uday Sareen to take over
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ING Vysya MD Shailendra Bhandari quits; Uday Sareen to take over

Bhandari has decided to step down to pursue 'new challenges'

Shailendra Bhandari, managing director, ING Vysya Bank. Photo: Hemant Mishra/MintPremium
Shailendra Bhandari, managing director, ING Vysya Bank. Photo: Hemant Mishra/Mint

Mumbai: ING Vysya Bank Ltd said on Tuesday that its managing director and chief executive officer (CEO) Shailendra Bhandari will quit the bank in January after more than five years at the helm.

Bhandari’s resignation has already been accepted by the bank board. He will continue in office till 31 January to ensure a smooth transition, the bank said in a statement.

Bhandari, a financial services veteran of 32 years with stints at Citibank NA, HDFC Bank Ltd and ICICI Prudential Asset Management Co Ltd, will be succeeded by current deputy CEO and wholesale banking head Uday Sareen.

“Shailendra Bhandari has expressed his desire to leave the company to pursue new challenges," the bank said. Sareen’s appointment will be subject to Reserve Bank of India (RBI) approval.

Bhandari was not available to speak to the media but in the statement he was quoted as saying the decision was not sudden and “had evolved over time."

“I just felt that I needed to do something different with the skills and talents I’ve developed. So after over five years as managing director and chief executive, I believe this is the right time to pass on the baton," Bhandari said.

The announcement came on a day that the bank said that its net profit in July-September increased just 2% to Rs180 crore from Rs176 crore in the year-ago period, on a 24% rise in non-interest income. The profit was in line with Rs180.40 crore estimated by a Bloomberg poll.

Bhandari is widely credited with improving the profitability of the bank and investors will view the announcement with some apprehension, said Silky Jain, an analyst at Nirmal Bang Securities Pvt Ltd.

“This was a surprise as it was not expected by the market and could create apprehensions in the mind of investors about the new management in the near future. Investors may look at booking profits at higher levels though the reported results looks good," Jain said.

Since Bhandari took the helm at ING Vysya in August 2009, the bank’s stock has gained 219.8% from Rs200.56 to Rs641.4 at the close of trading on Tuesday, beating the benchmark Sensex’s 71.54% and banking index Bankex’s 125.30% gains.

In a post results conference call with journalists, chief financial officer (CFO) Jayant Mehrotra said the continuity in the management team will ensure a smooth transition.

“Though Shailendra Bhandari was the head there is a management team in place and these is continuity in that team. Uday Sareen has been at the bank for eight years now, first as part of the retail strategy and now for wholesale banking. He is well known to investors and this succession has not been done overnight but planned over a period of time," Mehrotra said.

Sareen was named deputy CEO in March, elevating him to the No. 2 position in the bank after a 15 month stint within the group at ING Di-Ba, Germany’s third largest retail bank, as its chief strategy officer.

Earlier he was in charge of retail banking at ING Vysya between July 2007 and December 2012.

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Published: 28 Oct 2014, 08:47 PM IST
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