In HDFC Bank integration process, 70% of HDFC top executives to retire

As HDFC and HDFC Bank move ahead with their integration, most of the top management of erstwhile HDFC, which includes the executive management along with the senior leadership of the company, will not join the combined entity, HDFC Bank, The Times of India (ToI) has reported.

As the two lenders merge, about 70 per cent of the senior management of HDFC is set to step down from executive positions. This will be done in accordance with the set rules. Currently, the rules do not allow banks to have superannuated executives on the rolls.

The absence of the leadership from HDFC is likely to make the integration process smoother and faster as the leadership from the HDFC bank will drive the process, the report said.

Only three top executives of HDFC will be joining HDFC Bank. These are V. Srinivasa Rangan, who will be the bank's executive director. The other two senior members joining the bank are Sudhir Jha and Ajay Agrawal, who served HDFC as chief legal officer and company secretary, respectively.

As a part of the rearrangement in the leadership, Deepak Parekh will no more be a director. On the other hand, CEO Keki Mistry and Managing Director (MD) Renu Karnad will step down from executive positions and continue as directors.

As a part of the merger, about half a dozen senior officials will continue to work with the merged entity as consultants, the ToI report said. However, they will not be on the bank's rolls in an official capacity.

Regional head, Madhumita Ganguly; head of investor relations, Conrad Dsouza; and Chief risk officer, HDFC, Mathew Joseph, are among the members of the executive management who are stepping down as part of the merger.

Several senior HDFC officials who have attained 60 years have been offered roles to join as consultants, the ToI report said.