HDFC Chairman Deepak Parekh stated in his annual letter to shareholders that succession planning will be his top most priority to ensure frictionless transition within the HDFC group.
“Personally, the task of ensuring frictionless transition is and will be on the top of my mind. That said, it is not as if there will be an announcement right away. As passionate and energetic as some of our leaders within HDFC group are about their jobs, the reality is that individuals do get on in age,” Deepak added.
Parekh also stated in the same letter that Keki Mistry (63) will continue as the Vice-chairman and CEO of HDFC for three years, subject to shareholders’ approval.
“All the boards of the HDFC group of companies believe that succession planning needs a time frame of 18 to 24 months to ensure smooth transition. I am confident of the strong pipeline of talent for various functions across all companies within the HDFC group. Yet, positions at the helm require respective board and nomination and remuneration committees to evaluate options of both internal and external candidates,’’ Parekh added.
This is the first time that Parekh, who turns 74 this year, has spoken in public about his views on succession planning His statement comes as investors are focusing on the succession planning at HDFC Bank where Aditya Puri, the founder CEO, is scheduled to retire in October 2020.
Puri himself recently told an analyst meeting in May that there would be an 18-to-24 month transition and that his chosen successor would work with him for about 12 months before taking charge. Puri has been managing director of the country’s largest private lender over the last two decades since 1994, the longest-serving chief of an Indian bank.
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