Leading private sector lender HDFC Bank on Thursday announced that it had set up a search committee to appoint a successor to incumbent managing director, Aditya Puri whose term ends on October 26, 2020. He will turn 70 next year.
The bank informed bourses that Puri will act as an adviser to the six-member panel comprising Shyamala Gopinath, Sanjiv Sachar, M.D. Ranganath, Sandeep Parekh, Srikanth Nadhamuni, and Keki Mistry.
“The search committee, over the next few months, shall evaluate internal and external candidates to ensure a smooth transition,” HDFC Bank said.
Puri has been at the helm of the bank as MD since it was set up in 1994. According to the company’s annual report, Puri’s total remuneration in FY19 was close to Rs 13.7 crore.
The Reserve Bank of India in October last year had approved Puri’s re-appointment as the bank’s MD for two years. Under Puri’s leadership, the bank has weathered the asset quality storm to have one of the most stable bad loans ratios. The lender’s strategy to focus on the retail loan book allowed the bank to scale profitability and gain market share. HDFC Bank is regarded by investors as one of the most valuable banks in terms of PE ratio.
On a year-on-year basis, HDFC Bank’s net profit increased 26.75% to Rs 6,344.99 crore in the second quarter of the current fiscal year. In the September quarter, the bank’s gross non-performing assets (NPAs) stood at Rs 12,508.15 crore versus Rs 11,768.95 crore in the June quarter. The net NPA figure was 0.42% in the September quarter against 0.43% in the previous quarter.
HDFC Bank’s shares closed 1% lower at ₹1,265.35 on the S&P BSE on Thursday.