Who Will Replace Aditya Puri at HDFC Bank?

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Who will replace Mr. Aditya Puri at HDFC Bank? Who will be the successor to Mr. Aditya Puri, 69, whose term comes to an end in October 2020. He has been at the helm of country's largest private lender since its inception in 1994. Here, we will see the top 5 contenders for Aditya Puri at HDFC Bank.

HDFC Bank : Buy or Sell after Mr. Aditya Puri?

Introduction

Who will replace Aditya Puri at HDFC Bank? Who will be the successor to Mr. Aditya Puri, 69, whose term comes to an end in October 2020. He has been at the helm of country’s largest private lender since its inception in 1994. Here, we will see the top 5 contenders for Aditya Puri at HDFC Bank.

Detailed Stock Analysis by Invest Yadnya
Detailed Stock Analysis by Invest Yadnya

Who Will Replace Mr. Aditya Puri at HDFC Bank?

About Mr. Aditya Puri

  • Mr. Deepak Parekh, Chairman of HDFC Ltd, had hired Mr. Aditya Puri from Citibank to start HDFC Bank in 1994.
  • Mr. Puri took charge as Managing Director in September, 1994. HDFC Bank was listed on the Bombay Stock Exchange on 19 May 1995. Between then and now, the market capitalisation of the bank has grown from Rs.440 Cr to Rs.6.3 Lakh Cr.
  • Total assets of the bank has grown from Rs.3,394 Cr to Rs.12.44 Lakh Cr between during this period. Mr. Puri is the highest paid banker in the country and is retiring on October 26, 2020, after creating a behemoth with a market value of Rs.6.3 Lakh Cr as of today, having scaled past Rs.7.5 Lakh Cr in the recent past.
  • Puri succession is keenly watched by the industry as the new person will have to fill in a very large shoe. Given the way Mr. Puri has built the bank that commands the highest premium among the banking stocks across the world and also the best asset quality among the all domestic lenders.
  • Speculation is intense on whether the bank will pick an internal or an external candidate.
  • On November 28, 2019, the bank had set up a six-member panel to find a successor to Mr. Aditya Puri who turns 70 on October 26, 2020.

Top 5 Contenders for Mr. Aditya Puri at HDFC Bank

Top 5 contenders for Aditya Puri at HDFC Bank
Who Will Replace Aditya Puri at HDFC Bank?
1. Mr. Shashidhar Jagdishan
  • Mr. Jagdishan has been elevated to Additional Director & Executive Director of HDFC Bank last year only.
  • He joined the HDFC Bank in Finance Department and became a Business Head – Finance in 1999. In 2008, Mr. Jagdishan has appointed as Chief Financial Officer (CFO).
  • He is called as a “Change Agent” of the bank and played a critical role in supporting growth trajectory of bank.
  • Education Qualification :
    • Chartered Accountant
    • Holds Masters Degree in Money, Banking & Finance from University of Sheffield, UK
2. Mr. Kaizad Bharucha
  • Mr. Bharucha is an Executive Director of HDFC Bank & a member of Credit Approval Committee.
  • He is responsible for Wholesale Banking covering areas of Corporate Banking, Emerging Corporate Group, Business Banking, Capital Markets & Commodities Business.
  • Also, he has represented the HDFC Bank as a member of the working group of the RBI on Credit Information Bureau and also on the adoption of Basel II norms.
  • Education Qualification : Holds Commerce Degree from University of Mumbai
3. Mr. Bhavesh Zaveri
  • Mr. Zaveri is also an Executive Director of HDFC Bank.
  • He joined HDFC Bank in Operation Function in 1998, became a Business Head Wholesale Banking Operations in 2000 and Group Head of Operations in 2009. He has also delegated an additional responsibilities of IT Department in 2015.
  • Education Qualification
    • Holds a Master’s Degree in Commerce from Mumbai University
    • Certified Associate of the Indian Institute of Bankers
4. Mr. Piyush Gupta
  • Mr. Piyush Gupta, CEO at DBS Bank is Mr. Aditya Puri’s colleague at Citibank. Mr. Puri quit his job at Citibank to create HDFC bank, whereas Mr. Gupta went to head DBS bank.
  • He has played a recognized role in transforming DBS as a digital entity & expanding it outside Singapore to Emerging markets.
  • Deep understanding of Indian Markets strengthens his profile.
  • However, a Reuters report quoted a DBS spokesperson stating that “Piyush is happy at DBS and has no plans to leave”.
  • Education Qualification
    • Bachelor of Arts (Honours) Degree in Economics from St. Stephen’s College, Delhi University, India
    • Post Graduate Diploma in Management from Indian Institute of Management, Ahmedabad.
5. Mr. Ajay Banga
  • Mr. Ajay Banga is going to step down as Mastercard’s CEO & take charge as Executive Chairman from 1st Jan, 2021. He is a part of group of Indian American CEOs heading Blue-chip MNCs.
  • Nestlé, India (13 years) : Joined as Management Trainee
  • Pepsico (2 years) : Instrumental in launching fast-food franchises in India as the economy liberalized
  • Citigroup (13 years) : Spent 13 years, US Consumer Asset Division & Bank’s Retail Operation in North America, Head of Citigroup’s International consumer-banking and & Finance Business, Served as CEO of Citi-Asia Pacific 
  • Education Qualification
    • Bachelor of Arts (Honours) Degree in Economics from St. Stephen’s College, Delhi University, India
    • Post Graduate Diploma in Management from Indian Institute of Management, Ahmedabad.

HDFC Bank : Buy or Sell after Aditya Puri?

Why HDFC Bank stock is correcting?
  • There are 2 main reasons for the recent correction seen in HDFC Bank Ltd stock :
    1. Mr. Aditya Puri, MD & CEO of HDFC Bank is going to retire in October 2020. Mr. Puri hangs up his much-decorated boots this October, bringing the curtains down on a long, glittering stint that saw him become the longest-serving CEO of any private bank in India.
      • As the deadline for Puri’s successor is nearing, the bank will have to appoint someone who can continue to push for growth despite an economic slowdown.
      • The industry is watching who will be the successor to Mr. Puri. Who will replace him at HDFC bank?
      • Also, Mr. Puri sold HDFC Bank stake of worth Rs.156 Cr between February 11 and 12, 2020.
    2. Negative Market Sentiments amidst Coronavirus Outbreak
Is it a right time to Buy HDFC Bank?
Is it a right time to Buy HDFC Bank?
HDFC Bank – Is it a right time to Buy HDFC Bank?
  • As we can see in the above table, the HDFC Bank stock has seen the major dips in Price to Earnings Ratio in 2008 Financial crisis (PE = 20), 2013 Euro Crisis (PE = 21).
  • And currently the stock has corrected almost 10% from January 2020 and reached at PE of 24, where the stock has offered a great uptrend historically. Also, the stock used to see a resistance at PE Ratio around 33-34. So there is a great opportunity for HDFC Bank Ltd stock to jump in near future.
  • The fundamentals of the bank is also very strong with a stable and improving Net Interest Income (NII) as well as Net Interest Margins (NIM). So the bank is offering a consistent profit growth of around 20-25%.
  • So, it is a great opportunity for the retail investors to enter and be the part of the outstanding growth journey.

Frequently Asked Questions (FAQs)

Who is CEO and MD of HDFC Bank?

Mr. Aditya Puri is the CEO and MD of HDFC Bank since its inception in 1994

Who is the founder of HDFC Bank?

HDFC Bank was founded in 1977 as the first specialised mortgage company in India. HDFC was promoted by the Industrial Credit and Investment Corporation of India. Hasmukhbhai Parekh played a key role in the foundation of this company.

What is HDFC stands for?

HDFC stands for Housing Development Finance Corporation. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of RBI’s liberalization of the Indian Banking Industry in 1994.

Who is the highest paid banker in India?

Mr. Aditya Puri, MD and CEO of HDFC Bank is the highest paid banker and also the longest-serving head of any private banks in India. HDFC Bank’s Aditya Puri took home a monthly basic pay of Rs.89 Lakh, nearly 3 times more than the second top earner Axis Bank CEO Amitabh Chaudhry.

Which is No.1 private bank in India?

HDFC bank (Housing and Development Finance Corporation) is the biggest bank of India in terms of market capitalization (Rs.6.3 Lakh Cr as on March 5, 2020) followed by ICICI bank (Rs.3.3 Lakh Cr) and Kotak Mahindra Bank (Rs.3.07 Lakh Cr).

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