Three months after its merger with HDFC, HDFC Bank Ltd. is restructuring its top management, aiming to streamline operations and leverage technology for product and service expansion. The decision was communicated to employees via an internal memo on Sunday, as reported by Bloomberg News.
The bank has placed its information technology and digital functions under the direct supervision of CEO Sashidhar Jagdishan. These functions are led by Ramesh Lakshminarayanan, reflecting the bank's increasing reliance on technology to enhance its offerings across branches.
Ashish Parthasarthy, who has been leading the treasury since 2009, will now oversee the crucial retail branch business which handles deposits and product distribution. Under his leadership, the bank plans to split the geographical management of this sector to facilitate structured expansion and product planning. This new direction will be co-led by Smita Bhagat and Sampath Kumar.
Bhagat previously headed government and institutional business, ecosystem banking, inclusive banking, and startups. Meanwhile, Kumar was the group head of liability products, third-party products, and non-resident business at the bank.
Arvind Vohra, former head of the retail branch business, will now lead the bank’s retail assets, excluding mortgages. Mortgages will be overseen by Arvind Kapil. Parag Rao, who previously led the payments section, will be responsible for product liabilities and product management, including marketing. Rakesh Singh will continue to lead investment banking and private banking but will also take on additional responsibility for offshore international business.
The merger between HDFC and HDFC Bank took effect on July 1, 2023. The second quarter of FY24 will mark the first time the lender reports its results as a merged entity. The merger propelled HDFC Bank to become India's second-largest bank after the State Bank of India (SBI), with a loan book of INR 22.2 lakh crore ($297 billion) based on FY23 data. In terms of market capitalization, the merged HDFC Bank ranks as the fourth-largest bank globally, following JP Morgan Chase (NYSE:JPM), ICBC Bank, and Bank of America.
However, despite these significant strides, HDFC Bank's stock value has experienced a downturn over the past three months. The bank's performance has been relatively subdued compared to public-sector lenders, and uncertainties surrounding its merger have exerted pressure on the stock. Last month, Nomura Holdings (NYSE:NMR) Inc. issued a rare downgrade for the bank citing concerns about HDFC’s return on assets and pressures on loan growth. On Tuesday, HDFC Bank Ltd.'s shares closed at INR 1,507.95 ($20.26), down by 1.22%.
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