HDFC Bank, the country's largest private lender by market cap, on Saturday said it has shortlisted three candidates to succeed MD and CEO Aditya Puri, whose term is due to expire in October this year. The bank, however, did not disclose names of the candidates finalised for the top post.
"The board of directors of the bank has today finalised the names of three candidates, in the order of preference, for the position of the Managing Director & Chief Executive Officer (MD & CEO) of the bank," HDFC Bank said in a filing to Bombay Stock Exchange.
HDFC Bank will be submitting its application in respect of the recommendations relating to the said appointment, for the approval of the RBI, the bank further said.
The candidate as approved by the RBI, will succeed Aditya Puri, who's term as the Managing Director and CEO of the Bank, is due to expire on October 26, 2020.
"On receipt of RBI approval, the bank shall duly make the requisite disclosures pursuant to the regulations," HDFC Bank said in the exchange filing.
Last year, HDFC Bank had constituted a six-member search committee to find the next CEO. Aditya Puri had hinted that his successor could also be an outsider.
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. He has over 40 years of experience in the banking sector in India and abroad, and is credited with building India's biggest bank in terms of market valuation from scratch.
In a separate development, HDFC Bank today reported a 17.72 per cent year-on-year rise in net profit at Rs 6,927.69 crore for the fourth quarter ended March 31, 2020. Net revenues increased 18.2 per cent YoY to Rs 21,236.6 crore, while other income (non-interest income) rose 23.84 per cent YoY to Rs 6,032.57 crore. Net interest income was up 16.15 per cent YoY to Rs 15,204.06 crore in Q4 FY20, while net interest margin stood at 4.3 per cent during March quarter of FY20.
In the exchange filing, HDFC Bank said that there was a considerable slowdown in the economic activities following the outbreak of COVID-19. The coronavirus lockdown imposed by the government had impacted not only business volumes but it also affected its collection efforts, and as a other incomes were lower by Rs 450 crore for the quarter, the bank said.
The bank said that its board has not proposed any final dividend for the year ended March 31, 2020, in line with the Reserve Bank of India (RBI's) instruction to conserve capital in an environment of heightened uncertainty caused by COVID-19.