HDFC Shares Plunge 8% Following Rejig, ADR Slips 5%

Following a merger with HDFC Ltd in July, HDFC Bank is overhauling its management structure. According to Bloomberg, the bank informed staff members of the changes in a memo on October 1. The bank's retail assets, excluding mortgages, which will continue to be managed by Arvind Kapil as previously stated, will be supervised by Arvind Vohra. The key retail branch division, which manages deposits and product distribution, will be overseen by Ashish Parthasarthy, who has been in charge of HDFC Bank's Treasury since 2009. The ADR of HDFC Bank has also suffered post the bank's decision to reshuffle the top management. On the NYSE, it is down 0.69% to $57.52.

Kaizad Bharucha will now oversee the banking initiatives group, corporate social responsibility, and environmental, social, and corporate governance. She currently oversees wholesale banking as the deputy managing director. Sampath Kumar and Smita Bhagat will now lead the retail branch banking divisions. Kumar will be in charge of the West and South regions, while Bhagat will oversee branch banking for the North, Central, and East divisions. The relationship channel, or telesales, will be handled by Ashima Bhat. She will keep directing the infrastructure department, as per the data of Bloomberg.

The Treasury Head will now be served by Arup Rakshit. Marketing, liability product categories, third-party products, and non-resident products will all fall under the purview of Parag Rao, who is in charge of payments and consumer finance. The management of consumer-facing digital products including Payzapp, Vyaapar, and Smartbuy would fall under the purview of Ravi Santhanam. As the Chief Marketing Officer, Ravi will continue to lead online sales of retail products. The bank's chief digital experience officer will be Anjani Rathor, as per an internal document received by BQ Prime.

Along with overseeing international international banking, investment banking, private banking, and thematic research, Rakesh Singh will be in charge of developing the Banking as a Service (BaaS) principle. Ramesh Lakshminarayanan, the bank's current chief investment officer, will now oversee all of the organization's IT and digital operations. The sustainable livelihood scheme, business banking working capital, and a rural banking group will all be under the direction of Sumant Rampal. The position of chief compliance officer will be filled by Rakesh Kumar Rajput, as per BQ Prime.

Since Sashidhar Jagdishan joined the role of managing director and chief executive officer in October 2020, there have been two organizational changes in the bank. In a deal worth nearly $60 billion, HDFC and the nation's largest mortgage lender came to an agreement in April and the merger agreement between the two companies, whose combined market worth is approximately $190 billion. After the news of the management reshuffle, attention will remain on HDFC Bank's shares on October 4, which has dropped by more than 8% in the last six months and 7.41% YTD.