HDFC Bank’s New CEO Sashidhar Jagdishan Announces Changes In Business And Leadership
HDFC Bank announces new business plan under new CEO.
Sashidhar Jagdishan, who took over as the CEO of HDFC Bank Ltd. in October 2020, has announced changes to the bank’s business model and its leadership team. In a statement released on April 30, the bank said it will reorganise itself into three clear areas, including business verticals, delivery channels and technology.
By focussing on each of these areas, the bank said it aims to be “future ready”. As part of its strategy, HDFC Bank will increase its focus on the commercial banking, or micro, small and medium enterprises unit. The MSME business at present is dealt with as part of the wholesale banking book. By increasing its focus on the MSME business, HDFC Bank aims to bring in more focussed products and services for these clients.
As part of its reorganisation strategy, the bank said Rahul Shukla, who is currently the head of wholesale banking, will lead the MSME and rural verticals for the bank. The increased focus on the small business vertical is an important shift in strategy for HDFC Bank, which has grown to be one of the largest retail lenders in the country over the last decade or so.
The MSME business has already become a large area for the bank, with MSME loans accounting for Rs 2 lakh crore, out of Rs 5.46 lakh crore worth wholesale advances as of Dec. 31, 2020. HDFC Bank has been consistently increasing the share of wholesale loans on its book for the last few quarters, with such loans now accounting for 57% of the domestic portfolio.
Under its new strategy, HDFC Bank said that technology and digitisation will become the focus in all of its delivery channels.
“We’re creating engines of growth with top tier talent backed by technology and digital transformation to capitalise on opportunities that will accrue in the coming time,” Jagdishan was quoted as saying in the statement.
Other leadership changes include:
- Parag Rao, group head-payments business, will now also lead the bank’s digital and technology initiatives. Ramesh Laskhminarayanan, chief information officer, and Anjani Rathor, chief digital officer, will report to Rao.
- Ashish Parthasarathy, group head- treasury, to also lead teleservices, sales and relationship channels
- Sampath Kumar, group head-NRI business, will now be in-charge of tele-service relationships of the bank.
- Rakesh Singh, group head- investment banking and private banking, will also be responsible for marketing, retail liability products and managed programmes
- Smita Bhagat, group head- government and institutional business as well start-ups, will additionally drive the expansion of HDFC Bank’s rural presence.