NEW DELHI :
The board of directors of HDFC Bank at its meeting held on Thursday set up a search committee to identify a successor to managing director Aditya Puri. Puri, MD since the bank was set up in 1994, is one of the longest serving heads of a bank in India’s financial services history. His tenure ends on 26 October 2020. He turns 70 next year.
Puri shall act as an advisor to the committee, the company said in an exchange filing. The committee, over the next few months, shall evaluate internal and external candidates to ensure a smooth transition.
The board of directors also approved the appointment of Sashidhar Jagdishan and Bhavesh Zaver as additional and executive directors both. Their appointments, effectively immediately for three years, are subject to the approval of Reserve Bank of India.
In October 2018, the Reserve Bank of India had approved the re-appointment of Puri as managing director of the bank for another two years.
Puri has been instrumental in making HDFC Bank one of the most valued lenders banks globally.
The HDFC Bank stock has been popular among investors because of strong growth in profitability, stable bad loan ratio and superior deposit franchise credit underwriting and structurally better net interest margin. The recent liquidity crisis has had little impact on its portfolio. The bank informally carries the tag of ‘25% growth engine’ in the stock market for consistently growth its profit by at least that much for several years.
The bank’s net profit rose 26.8% year-on year to ₹6,345 crore in the September quarter.
Managing director since 1994 when the bank was set up, Puri took home ₹13.7 crore in total remuneration in FY19.
Shares of the bank closed 1% lower at ₹1,265.35 on the BSE today