INSUBCONTINENT EXCLUSIVE:
Citi has a buy call on HDFC Bank with a target price of Rs 2,590.
The current market price of HDFC Bank is Rs 2,090.65.
Time period given by
Paresh Sukthankar, Deputy MD, the chances of an external candidate becoming the next MD/CEO increase significantly in our view
Sukthankar was elevated to the position of Deputy MD in December 2013 he was widely seen as the internal candidate to become the next MD
Some investors might be concerned with this development as this resignation comes just a week after the bank raised equity capital of ~INR
Puri still has more than two years before his term as MD ends in October 2020
Hence, we find the timing of Mr
Sukthankar's resignation a bit surprising
At an analyst meet in May 2018, Mr
Puri had suggested the bank would consider both internal and external candidates for the role of the next MD and that the name would be
announced at least a year before Mr
Sukthankar has been with the bank since its inception in 1994 and has played an integral role in shaping the bank's strategy and its
transformation into one of the leading financial institutions in the country
His key responsibilities include credit and risk management, finance, HR, amongst others
While the bank has put in a lot of systems and processes over the years, losing someone as experienced as him could create some short-term
