Aditya Puri, MD at HDFC Bank, on Thursday said that the concerns being raised on the succession plan are overblown, CNBC TV-18 reported. “Succession is not a one -time affair”, Aditya Puri also said. There is no difference of opinion at the board level when it comes to a successor and it is rooting for the best candidate, Aditya Puri added. It’s not necessary that my successor will be an internal candidate only, he also said.
In January 2020, the HDFC Bank had selected a global executive search firm, Egon Zehnder, to identify a successor to Aditya Puri. “Egon Zehnder has been recommended by the search committee and unanimously appointed by the bank’s board,” HDFC Bank, said in an email. Aditya Puri, whose term is set to reach an end in October this year, is also an adviser to the search committee mandated to find his successor at HDFC Bank. Aditya Puri is 69 years old as of now.
According to the existing regulations, HDFC Bank will need to get a nod from the Reserve Bank of India (RBI), before confirmation of any appointment. Meanwhile, HDFC Bank, in Q3FY20, posted a 32.77 per cent year-on-year (YoY) rise in net profit at Rs 7,416.48 crore for the quarter ended December 2019. It had posted a net profit of Rs 5,585.85 crore in the same period last year. The private sector lender’s third-quarter profit beat the street estimates supported by higher other income. The other income of the lender zoomed 35.52 per cent YoY to Rs 6,669.28 crore during the quarter under review. The net interest income (NII) rose 12.69 per cent YoY to Rs 14,172.90 crore in the given period.