On Monday, shares of HDFC Bank fell over 3 percent to Rs 1,081 apiece as the private lender's Managing Director Aditya Puri sold 74.2 lakh shares or 0.13 percent stake worth Rs 842.87 crore in the bank between 21 July and 23 July, according to stock exchange filings.
The stake sale comes three months ahead of the end of his term as the MD of HDFC Bank. Puri held 0.14 percent stake or 78 lakh shares in the bank as of 30 June, that is, before the transaction. With this sale, the veteran banker now holds 3.76 lakh shares or 0.01 percent stake in the bank.
An HDFC Bank spokesperson said in a clarification these shares were allotted to Puri at different times and at different price points (not at par), therefore, the net amount realized by him is not Rs 840 crore. The acquisition cost of shares and the tax payable on the transaction has to be accounted for as well, he said.
Puri's 26-year stint at the bank ends in October, has been credited for the building the brand that is now the most valuable private bank in India. He had earlier exercised stock options worth Rs 161 crore, according to HDFC Bank's annual report.
HDFC Bank board had set up a search committee to identify his successor and has already submitted their suggestions to the Reserve Bank of India (RBI). Puri, in an interview earlier this month had said that his successor will most likely be an insider who has been with the bank for a long time.