Mumbai: HDFC Bank Ltd, India’s top lender by market value, is looking for a successor to managing director and chief executive officer Aditya Puri who will retire in 2020, the bank told analysts on Wednesday.
“Mr. Puri will retire in 2020 & his successor will be identified 12 months prior to that," Edelweiss Securities said in a note on Thursday.
In April, HDFC Bank, which is consistently a solid performer on the earnings front, said its fourth quarter net profit rose 20.28% on the back of higher net interest income and other income.
Edelweiss Securities said it expects HDFC Bank to clock more than 25% earnings CAGR (compounded annual growth rate) over fiscal year 2018 to fiscal year 2020 and sustain superior return ratios led by sustainable market share gains.
“Management succession planning is in place," Motilal Oswal Securities Ltd said in a note on Wednesday, adding the bank will start looking for candidates 18 months in advance and will announce the name 12 months before the retirement timeline.
“Candidate can be both external and internal," Motilal Oswal said in the note.
Puri is a chartered accountant by qualification, and has been the managing director of the bank since September 1994. Prior to joining HDFC Bank, he was the CEO of Citibank, Malaysia from 1992 to 1994.
HDFC Bank is the most-tracked Indian stock with 55 analysts tracking it, data from Bloomberg showed. It is also the most-preferred Indian stock with 50 of these analysts having a buy or overweight rating.