HDFC Bank hunts for Aditya Puri's successor; plans 1 year overlap period with CEO
Puri, who has been the Managing Director of the Bank since September 1994, said that the talent for CEO's post could be internal or external and an announcement will be made in next 18 months.
- May 10, 2018,
- Updated May 10, 2018 9:47 PM IST
Even though its founding CEO Aditya Puri has got over two years to serve before he hangs up his boots, the HDFC Bank management is not taking any chances. India's largest private sector lender will start hunting for the next-in-line to fill in CEO's shoes 18-24 months ahead of Puri's retirement. Not just this, the successor will also get to work closely with Puri for a year. During the 12-month overlap period the incoming CEO will get learn the tricks of the trade hands-on from Puri.
At an analyst meet, HDFC Bank's Chief Executive Officer and Managing Director Aditya Puri, who will retire in October 2020, laid down a roadmap for the succession planning. Puri said that the depth of leadership at the bank will ensure that the transition is smooth.
Puri, who has been the Managing Director of the Bank since September 1994, said that the talent for CEO's post could be internal or external and an announcement will be made in the next 18 months.
Puri is credited with building India's biggest bank in terms of market valuation from scratch. At a time when Puri's peers at Axis Bank and ICICI Bank are caught up in controversies, the market capitalisation of HDFC Bank crossed Rs 5 lakh crores early this year. The bank became third company to achieve this milestone in India after TCS and RIL. According to Goldman Sachs, HDFC Bank will touch the market cap of $100 billion by 2020.
Puri has been at the helm of HDFC Bank since its inception, making him the longest-serving chief executive of any private-sector bank in the country. Puri has over 40 years of experience in the banking sector in India and abroad.
According to BloombergQuint, the bank's top management told analysts that growth was on track. Even if there is a moderate recovery in the capex cycle, this is unlikely to derail retail credit growth. Retail credit growth will continue to do well at least for the next five years driven by under-penetration. HDFC Bank will focus on organic growth and M&A is not on the table.
Even though its founding CEO Aditya Puri has got over two years to serve before he hangs up his boots, the HDFC Bank management is not taking any chances. India's largest private sector lender will start hunting for the next-in-line to fill in CEO's shoes 18-24 months ahead of Puri's retirement. Not just this, the successor will also get to work closely with Puri for a year. During the 12-month overlap period the incoming CEO will get learn the tricks of the trade hands-on from Puri.
At an analyst meet, HDFC Bank's Chief Executive Officer and Managing Director Aditya Puri, who will retire in October 2020, laid down a roadmap for the succession planning. Puri said that the depth of leadership at the bank will ensure that the transition is smooth.
Puri, who has been the Managing Director of the Bank since September 1994, said that the talent for CEO's post could be internal or external and an announcement will be made in the next 18 months.
Puri is credited with building India's biggest bank in terms of market valuation from scratch. At a time when Puri's peers at Axis Bank and ICICI Bank are caught up in controversies, the market capitalisation of HDFC Bank crossed Rs 5 lakh crores early this year. The bank became third company to achieve this milestone in India after TCS and RIL. According to Goldman Sachs, HDFC Bank will touch the market cap of $100 billion by 2020.
Puri has been at the helm of HDFC Bank since its inception, making him the longest-serving chief executive of any private-sector bank in the country. Puri has over 40 years of experience in the banking sector in India and abroad.
According to BloombergQuint, the bank's top management told analysts that growth was on track. Even if there is a moderate recovery in the capex cycle, this is unlikely to derail retail credit growth. Retail credit growth will continue to do well at least for the next five years driven by under-penetration. HDFC Bank will focus on organic growth and M&A is not on the table.