Deepak Parekh on HDFC Bank deputy MD Paresh Sukthankar, once Aditya Puri's likely successor

The haze around the succession to the top job at HDFC Bank may have led to Sukthankar, deputy managing director, HDFC Bank, putting in his papers after 24 years of service at the bank.

However, he is not leaving for competition, according to Deepak Parekh, chairman, HDFC, the parent of HDFC Bank. "He said he has not applied anywhere and I believe him," Parekh told DNA Money. Asked if there are succession troubles brewing in the bank, Parekh said, "When Mr Puri retires he was one of the most able contenders, but not the only one. We cannot give the post to one person, we would have to look at others also and make the best choice." Aditya Puri is set to retire in October 2020 at the age of 70. On August 10, Sukthankar resigned. The bank said the resignation would take effect 90 days from August.

"Paresh has worked very hard for the bank for 24 years and he has done immense work for the bank," Parekh said. When asked if he did not persuade Sukthankar to stay back, he said, "Of course, I did. But then it is the individual's choice. Even one of our Board members and former RBI deputy governor Shyamala Gopinath asked him to stay, but he said he is leaving for personal reasons," Parekh said.

Keki Mistry, another Board member of HDFC Bank and vice chairman and chief executive officer, HDFC Ltd, said, "We still have not started looking out for Puri's successor. We will start when it is one year to go. Puri is retiring in 2020." Mistry also said that Sukthankar said he is not leaving to join the competition. "He had a good chance of being the managing director and chief executive officer, but the bank was planning to look for candidates for the top post, both externally and also internally."

If the balance-sheet of HDFC Bank was strong and the bank was being able to ring-fence the bad loan malaise that is spooking the Indian lenders, it was because of Sukthankar, say old timers.

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"When banks were handing out infrastructure loans, HDFC Bank was the only one which thought that it needs to keep away from such high-ticket loans and rather concentrate on short-term loans that run off faster," said an old timer with HDFC Bank.

During a meeting with analysts in May, Aditya Puri had said that the bank would start scouting for his successor, and the candidates could be external or internal, dropping one of the first hints that there may be other candidates that the Board would like to consider.

Source: DNA Money