Nearly 70% of the senior management of HDFC, which has merged with HDFC Bank, will step down from executive positions, in a move that could expedite the integration process.
Most of the top management of erstwhile HDFC comprising members of the executive management – and not just the senior leadership- will not join the combined entity, HDFC Bank, as rules do not allow banks to have superannuated executives on bank’s rolls, as per a Times of India report.
The absence of senior executives from HDFC is expected to make the integration process more seamless as the bank leadership will drive the process.
Out of the top 20 HDFC executives, only three will join the combined entity. V. Srinivasa Rangan will be the bank’s executive director. Apart from him, Sudhir Jha -the former chief legal officer – and Ajay Agarwal – HDFC’s former company secretary- are the other two members of senior management joining the bank, as per the report.
On July 1, HDFC Ltd’s long-standing Chairman Deepak Parekh announced his retirement. CEO Keki Mistry and MD Renu Karnad will step down from executive positions and continue as directors.
Other members of the executive management who are stepping down include Madhumita Ganguly, regional head; Conrad Dsouza, head of investor relations; Suresh Menon, head of internal audit; and Mathew Joseph, chief risk officer, HDFC. Other senior management not joining the bank include Satrajit Bhattacharya, senior general manager in charge of mergers & acquisitions and fundraising, and Mahesh Shah, senior general manager who headed corporate communications, the TOI report said.
However, around half a dozen senior executives will continue working with the merged entity in the capacity of consultants, although they will not be officially on the bank’s rolls. Many senior executives of HDFC who have completed 60 years have received offers to join HDFC Bank as consultants.