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Why HDFC Bank MD Aditya Puri is not too disturbed by Deputy MD Paresh Sukthankar’s exit

After HDFC Bank Deputy MD Paresh Sukthankar quit in a surprise move, HDFC Bank CEO Aditya Puri said that while he understands concerns regarding Sukthankar’s resignation, the business will not be affected.

Why HDFC Bank MD Aditya Puri is not too disturbed by Deputy MD Paresh Sukthankar’s exit

After HDFC Bank Deputy MD Paresh Sukthankar quit in a surprise move, HDFC Bank CEO Aditya Puri said that while he understands concerns regarding Sukthankar’s resignation, the bank is not dependent on any individual including himself. “We are well capitalised. We have got processes in place. We have people in place. We have individual business managers running the business. No one individual can take decisions. The bank is not dependant on any individual including myself,” Aditya Puri said in a concall. Notably, Paresh Sukthankar stepped down as deputy managing director of HDFC Bank on Friday. Interestingly, Sukhtankar was earlier elevated to the deputy managing director position in March 2017, and was widely expected to take over from current managing director Aditya Puri.

“We hereby inform you that Paresh Sukthankar has tendered his resignation as deputy managing director, to be effective 90 days from the close of business hours of today,” HDFC Bank said in a statement earlier. “There are young competent managers, who are here to stay for the next 5 years. The vision and strategy is clear for that period. We have the depth of management, and this will not affect the regular course of business. Of course, it is a loss of a great resource. The board and I will take an appropriate decision in 10-15 days,” he added.

Sharing the future course, Puri said that Deputy MD post will no longer exist in the bank.  “Deputy MD role was created for Paresh Sukthankar valuing his contribution. There won’t be a role of Deputy MD at HDFC Bank anymore,” he said. Global research firm Macquarie said that Sukhtankar will be a good fit in Axis Bank.  Taking stock of the development, Macquarie said that HDFC Bank is not new to top level attrition. Interestingly, Sukhtankar’s resignation had triggered off rumours that he may be joining Axis Bank.

“If you read between the lines, the circular clearly says a 90 days’ notice — so you are talking about August, September, October — that’s the three-month notice… And Shikha (Shikha Sharma, CEO, Axis Bank) goes off in December. This exactly ties in with his resignation and perhaps the new guy likely to join Axis Bank. So, that’s my guess,” Suresh Ganapathy, Banking Analyst, Macquarie told CNBC TV18 on Friday. Macquarie is confident that HDFC Bank will handle the challenge well. Puri said that Paresh Sukthankar was a contender for the post of MD & CEO. “Succession plan for MD & CEO will continue despite Sukthankar’s exit. His exit not linked to search of MD & CEO; exit was on personal grounds,” Aditya Puri said.

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First published on: 13-08-2018 at 10:28 IST
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