When HDFC Bank CEO Aditya Puri sold Rs 800 crore worth of his HDFC Bank shares, Zee Business Managing Editor Anil Singhvi had said that there is nothing really to worry about. That time he had said that Aditya Puri has given around 25 years to the HDFC Bank and now he is planning for his life beyond this job. Yesterday, RBI approved the appointment of Sashidhar Jagdishan as new CEO of HDFC Bank and paved way for replacement of Aditya Puri, who is set to retire. After that HDFC Bank shares made a big breakout, indicating that market participants welcomed the move.
Decoding the importance of Sashidhar Jagdishan replacing Aditya Puri as HDFC Bank CEO, the Market Guru said, “It’s all about leadership and organisational structure. A leader has a big role to play in the success of an organisation but organisation also has some face value that comes from the full leadership standing behind the leader. In the case of HDFC Bank, Aditya Puri served for around 25 years and in this period, he developed a string of leaders who could easily replace him as and when required. I believed in that and said that Puri sahib had all rights to liquidate his earning in the form of HDFC Bank shares. But, it didn’t meant the financials or fundamentals of the bank had gone weak.”
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Singhvi went on to add that Reserve Bank of India (RBI) approval for Jagdishan as replacement for Aditya Puri also means a lot. If RBI has approved Jagdishan as new CEO, then it’s for sure that the man is capable of shouldering all the responsibilities that Aditya Puri handled. The markets looked at this appointment in the same way and hence the HDFC Bank shares shot up yesterday and that rally is still visible in the banking stock today as well.
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नए मैनेजमेंट से HDFC बैंक होगा और मजबूत…अनिल सिंघवी ने कहा- आदित्य पुरी के हिस्सा बेचने का शेयर पर नहीं होगा कोई खास असर…बोले-आदित्य पुरी ने बनाई है शानदार टीम…#EditorsTake @AnilSinghvi_ #HDFCBank pic.twitter.com/GC0i6Ag6Gr
— Zee Business (@ZeeBusiness) August 5, 2020
The Market Guru said that there nothing to worry for all those investors who want to buy HDFC Bank shares but not sure about the bank in the post-Aditya Puri era. An organisation like HDFC Bank develops series of leaders and Aditya Puri made sure his management did the same – Sashidhar Jagdishan has emerged from there.
Therefore, change of management won’t have much impact on the organisation like HDFC Bank, said Singhvi.