With the mega-merger of HDFC Limited and HDFC Bank taking shape from July 1, the top management is in a huddle to reshuffle some of the key portfolios at the bank. Simultaneously, work is on with respect to board appointments at the subsidiaries which have recently been brought under HDFC Bank’s fold due to the merger.
Rejig in retail businesses
Sources in the know indicate that Aravind Kapil — the group head of retail assets at the bank — may take over the retail mortgages business of HDFC Limited; while the wholesale or the infrastructure portfolio of the erstwhile mortgager may come under Deputy Managing Director Kaizad Bharucha’s watch. “The teams which were reporting to the respective business head and ultimately to Keki Mistry, CEO of HDFC Limited, will report to the new heads at HDFC Bank,” said a person familiar with the development.
The official communication regarding the rejig in portfolios is expected to be announced in a week or so. Email sent to HDFC Bank remained unanswered till press time.
With over ₹5-lakh crore of retail mortgages getting added to the bank, it is gathered there could be more portfolio reallocations especially in the retail business of the bank.
Board nominations for subsidiaries
As for appointing directors as representatives of at the bank across various subsidiaries, with the critical ones identified as HDFC Life Insurance Company, HDFC Asset Management Company and HDFC ERGO, internal discussions are currently underway.
According to sources, Bharucha, the bank’s CFO S Vaidyanathan, and a few other business heads including Rakesh Singh, Group Head-investment banking and private banking, are being considered for inclusion in the boards. Bharucha is expected to join the board of HDFC Life, while Kapil or Singh may be considered for nomination at HDFC ERGO. As for HDFC AMC, Vaidyanathan and Bharucha are seen as the critical contenders.
Clarity on board appointments is expected to emerge in a few weeks once the internal portfolio rejigs at HDFC Bank concludes.
Also given that board positions at the subsidiaries of HDFC Bank have to be filled in post the merger, nominations for that are also underway.