HDFC Bank on a spree of top management reshuffles as resignations come in hand

Mumbai based HDFC bank had constituted a six-member search committee last year to find a replacement for Aditya Puri.

HDFC Bank on a spree of top management reshuffles as resignations come in hand. A spree of top-level exits at HDFC Bank Ltd has turned the spotlight. Which is set for a top leadership change later this year. Since March, the bank has seen the exits of Abhay Aima, group head of private banking. Also Ashok Khanna, group head of secured vehicle loans. And Munish Mittal, chief information officer. All HDFC Bank veterans and close aides of its long-time managing director Aditya Puri.

However, it is in all likelihood that there is an expected top management reshuffle. In the country’s largest private lender before Aditya Puri term.

The bank has sent three shortlisted names to Reserve Bank of India as Puri’s successor. Which were Sashidhar Jagdishan and Kaizad Bharucha. But both executive directors of the bank. And Sunil Garg, global chief executive officer of Citi Commercial Bank.

HDFC Bank has described all three exits as routine developments. It has said that it is also investigating a probe on the alleged vehicle finance business, which was headed by Ashok Khanna.

Khanna, according to a Bloomberg News report, was denied an extension after receiving two extensions post-retirement.

HDFC Officers Quit After High Profile Lock Down

The Bloomberg News report on Monday said. Khanna’s exit is linked to an “internal audit of the bank’s vehicle dealer lending. As well as allegations of conflicts of interest in the purchase. Of global positioning systems for vehicles financed by the bank”.

According to the private lender. The reason behind Mittal’s abrupt exit is his decision to pursue higher studies in a foreign university. Aima, on the other hand, has decided to take an early retirement.

“HDFC Bank has a robust policy and process to deal with complaints and allegations and take action as appropriate. The process and the outcome of dealing with such complaints is an internal matter of the bank. Where we are required to be guided by our policy on disclosure. Suffice to say that as a bank. We’ve always upheld the highest standards of governance. And propriety at all times and will continue to do so”. An HDFC Bank spokesperson said.

The bank had constituted a six-member search committee last year. In order to find a replacement for Puri and hired Egon Zehnder for assistance.

“Puri has made it clear to the board that he is backing Sashi’s candidature. However, if Sashi is appointed, there is a possibility that Bharucha will leave. So, getting an outsider is the best option. As he brings in fresh ideas”. A person aware of the matter said.

New Successors To Fill The Void 

Some of the names Egon Zehnder recommended were. Mastercard chief executive officer Ajay Banga. Who is likely to take charge as chairman in January 2021. And Piyush Gupta, global chief executive officer of DBS Bank.

The board of HDFC Bank is set to meet on Friday.

In 2018, private sector lender Axis Bank had a similar series of high-level exits. However, after the retirement of Shikha Sharma. Who was succeeded by Amitabh Chaudhary. As managing director and chief executive officer.

You might also like