- According to stock exchange filings, HDFC Bank Managing Director Aditya Puri sold 95 percent of its equity interest months before his retirement.
- The bank announced its Q1 FY20 results last week with a 19.6 percent rise in net profit from crore Rs 5,568.16 in Q1 FY19 to crore Rs 6,658.62 in Q1 FY20.
According to stock exchange filings, HDFC Bank Managing Director Aditya Puri sold 95 percent of its equity interest months before his retirement – 74.2 lakh shares – worth Rs 842.87 crore from July 21 to 23. Puri had held 77.96 lakh shares or 0.14 percent stake in the bank’s equity capital before this transaction. He currently has a holding of 0.01 percent or 3.76 lakh shares. Puri ‘s share sale came about three months ahead of his retirement from the top job since 1994 as the managing director.
For FY2019-20, Puri was the highest-paying banker among top bankers. His salary and prerequisites were up 38 percent from the previous year to Rs 18.92 crore.
The bank announced its Q1 FY20 results last week with a 19.6 percent rise in net profit from crore Rs 5,568.16 in Q1 FY19 to crore Rs 6,658.62 in Q1 FY20. Also, its net interest income rose by 17.8 percent to Rs 15,665.4 crore from Rs 13,294.3 crore for the year-ago period based on advance growth of 20.9 percent to Rs 10,03,299 crore and 24.6 percent deposits to Rs 11,89,387 crore.
The asset quality also marginally improved with gross NPAs at 1.36 percent of gross advances as of 30 June 2020, compared to 1.40 percent as of 30 June 2019. The bank’s net NPAs are 0.33 percent of net advances as of 30 June 2020.
PTI reported that the bank had added 2.5 lakh, new clients, through its Instant Account App launched in late April during the lockdown. Although banks were allowed to operate, however, fewer footfalls remained which helped to open new deposit accounts on the digital channel. As of 30 June 2019, HDFC Bank had 5,326 branch offices and 14,996 ATMs / cash deposit and withdrawal machines (CDMs) in 2,825 cities, up from 4,990 branches and 13,727 ATMs / CDMs in 2,764 cities and towns.
The term Aditya Puri, who has been managing director and chief executive since the formation of the bank in 1994, ends on 20 October 2020. The board of HDFC Bank set up a selection committee in November last year to find his successor. The six-member committee comprising Shyamala Gopinath, Sanjiv Sachar, M D Ranganath, Sandeep Parekh, Srikanth Nadhamuni, and Keki Mistry will be advised by Aditya Puri.
