HDFC Bank tumbles as Sukthankar quits; brokerages' take
HDFC Bank dropped early Monday on Paresh Sukthankar’s resignation as deputy managing director.
Sukthankar resigned as Deputy MD of the private lender on Friday.
Global brokerage firm Macquarie sees early resignation as a “surprise”. “HDFC Bank is not new to top level attrition. At the margin, this development is negative. We are confident that HDFC Bank will manage the challenge well,” it stated.
Macquarie sees “interesting times” for private banks in India and believes that Sukthankar will be a good fit for Axis Bank.
Sukthankar has been with HDFC Bank since its inception in 1994 and is responsible for overseeing the bank’s credit, finance and human resources functions.
“We hereby inform you that Paresh Sukthankar has tendered his resignation as Deputy Managing Director of the bank, to be effective 90 days from the close of business hours of today,” HDFC Bank said in a regulatory filing on Friday.
His resignation comes almost nine months ahead of HDFC Bank initiating talent search for replacement for its Managing Director Aditya Puri.
The country’s second-largest private bank said its board of directors places on record its appreciation for the contribution made by Sukthankar in his long association with the bank.
With his resignation, air is rife with speculations that he may join rival banks at the top level.
Axis Bank has already initiated the process of seeking replacement for Axis Bank CEO Shikha Sharma. The managing director of ICICI Bank is already on leave, pending independent enquiry to probe alleged cases of impropriety.
Citi said, “Chances of external candidate as new MD of HDFC Bank rise. Some investors may be concerned that this news comes after the QIP issue. Puri had indicated in an analyst meet in 2018 that external and internal candidates will be considered. Sukhtankar’s exit after 24 years could create short term disruption.”
Japanese brokerage firm said, “Sukhthankar’s exit is a small near-term negative. The bank has a strong second line management. Timing of this and the notice period of 3 months matches with change in guard at Axis Bank.”
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Via:: Economic Times – Stocks