HDFC Bank Shares Fall After Lender Forms Committee To Find Next MD

Shares of HDFC Bank declined as much as 1 percent to an intraday low of Rs 1,252 apiece on NSE on Friday. On Thursday, the bank informed in a stock exchange, its board's decision to form a search committee to identify a successor to Aditya Puri, the current managing director. Puri's tenure ends on 26 October 2020.

HDFC Bank: Quotes, News

BSE 772.050.85 (-0.11%)

NSE 772.001 (-0.13%)

The private lender said that the committee will comprise of Shyamala Gopinath, Sanjiv Sachar, MD Ranganath, Sandeep Parekh, Srikanth Nadhamuni and Keki Mistry (representative of Housing Development Finance Corporation Limited).

"Mr. Aditya Puri shall act as an advisor to the Search Committee," the filing said.

"The Search Committee, over the next few months, shall evaluate internal and external candidates to ensure smooth transition," it added.

The elevation of Sashidhar Jagdishan and Bhavesh Zaveri as executive directors for a period of three years was also announced.

At the annual general meeting this year, Puri said that he wanted a replacement who would not require a year's mentorship and would be able to catch up in 15 days at best.

Puri will turn 70 next year and has been credited in building India's most valued bank in terms on market cap. He has been with HDFC Bank since its inception in 1994. On 28 November, the private sector bank's market capitalization stood at Rs 6.9 trillion.