70% of HDFC top executives to step down

The majority of the former HDFC top management, which comprises the executive management and senior leadership of the corporation, will not join the new entity, HDFC Bank, as HDFC and HDFC Bank move through with their integration.  Approximately 70% of HDFC’s senior management would retire from executive roles as a result of the merger of the two lenders. The established rules will be followed in this situation. At the moment, banks are not permitted by the rules to list superannuated CEOs.

According to reports, since the HDFC bank would be driving the integration process, the lack of the HDFC bank leadership is anticipated to make the approach easier and more swiftly. Only three of HDFC’s top executives will go to HDFC Bank. These individuals make up the executive director of the bank, V. Srinivasa Rangan. Ajay Agrawal and Sudhir Jha, who previously worked for HDFC as the corporate secretary and chief legal officer, respectively, are the other two top executives who have joined the bank.

According to information regarding their management, Deepak Parekh will leave his position as a director while Keki Mistry, the CEO, and Renu Karnad, the MD, would leave their executive posts while remaining on the board of directors. Additionally leaving the executive board are Madhumita Ganguly, regional head, Conrad Dsouza, head of investor relations, Suresh Menon, head of internal audit, and Mathew Joseph, chief risk officer for HDFC. Along with them, Mahesh Shah, senior general manager in charge of corporate communications, and Satrajit Bhattacharya, senior general manager in charge of fundraising and mergers & acquisitions, will not be joining the bank. 

Despite the large number of executives leaving, about six top executives will continue to work with the merged business as consultants even though they won’t be included on the bank’s books. Many senior HDFC executives who have reached 60 years of age have been given the opportunity to work as consultants for HDFC Bank.

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