Aditya Puri sells 7.42 million shares in HDFC Bank for Rs 843 cr

Puri, the longest serving MD of a private bank in India, has been at the helm of HDFC Bank for the last 26 years, since its inception in 1994

Private sector lender HDFC Bank’s Managing Director (MD) Aditya Puri has sold 95 per cent of his shareholding in the bank valued at Rs 842.7 crore. Puri held 0.14 per cent stake (or about 7.8 million shares in the bank), of which he has sold 7.42 million shares between July 21 and July 23.

Puri has been the longest serving MD of a private bank in India. Puri has been at the helm of HDFC Bank for the past 26 years, since its inception in 1994. Puri will hang up his boots this October as he will reach the maximum age limit of 70 for a chief executive officer of a private bank.

He took home an annual salary of Rs 18.92 crore in 2019-20, which was 38 per cent higher than in the previous year, and emerged the highest-paid banker among the top private lenders. Puri exercised stock options of Rs 161.56 crore during the year, according to the bank’s 2019-20 annual report.

“The shares were allotted to Puri at different times, at different price points (not at par). The acquisition cost and tax have to be accounted for as well. The net amount, therefore, will be much less,” said the spokesperson for HDFC Bank.

According to exchange filings, Puri exercised 3.42 million stock options at an acquisition cost of Rs 158 crore between October 2015 and July 2020, and sold 9.65 million shares, including last week’s sale, for Rs 1,165 crore. HDFC Bank has shortlisted three potential candidates for the position of MD after Puri demits office. The bank is awaiting the RBI’s approval on the CEO.