HDFC Bank recommends 5 more years for Puri as chief

The board of directors of HDFC Bank, second largest private lender, has extended managing director Aditya Puri's tenure for another five years, with effect from November 1.

Last September, the Reserve Bank of India raised the age limit of private bank chiefs to 70. Puri, 64, has headed the bank since its inception in 1994, the longest serving chief executive of an Indian bank.

The bank gave the news in the annual general meeting notice for 2014-15 to its shareholders. The AGM will be on July 21.

 

After his re-appointment is approved, Puri will earn a remuneration of Rs 4.89 crore in basic salary and allowances. The board said it had approved his reappointment as the bank had achieved consistent growth across key parameters like balance sheet size, total deposits, advances, net revenues, earnings per share and net profit.

“In a competitive and dynamically changing industry, it is critical for the Bank to draw on the expertise, knowledge and experience of such leaders who have an exceptional track record and are recognised among the best business leaders in the country,” said the AGM notice.

The bank said its audit committee has approved purchase of home loans from Housing Development Finance Corporation of Rs 20,000 crore in FY16. This is Rs 8,000 crore more than what the bank had purchased in FY15.

Under the arrangement between the bank and HDFC, the former sources home loans for HDFC through its branches across the country. After the due-diligence process, HDFC disburses the loans and pays the bank a commission. HDFC Bank has the right to buy up to 70 per cent of such home loans.