HDFC Bank is now searching for a new CFO
What's the story
HDFC Bank has begun the search for a new Chief Financial Officer (CFO), as per Moneycontrol. The current incumbent, Srinivasan Vaidyanathan, is not likely to get an extension when his term ends in October this year. The bank has started talks with several senior industry professionals to fill the position after Bhavin Lakhpatwala's recent exit to RBL Bank as its CFO. To note, Lakhpatwala was an old-timer at HDFC Bank and seen as a possible successor to Vaidyanathan.
Future prospects
Possible extension for Vaidyanathan
While the search for a new CFO is underway, there's a possibility that Vaidyanathan could be given a one-year extension if the process remains inconclusive. This comes amid other high-profile succession exercises at HDFC Bank. The term of interim chairman Keki Mistry is likely to end in mid-July, although a 90-day extension has been sought. The bank's board is also expected to recommend an extension for CEO and MD Sashidhar Jagdishan whose tenure ends in October this year.
Recruitment strategy
Bank looking beyond its own ranks for CFO position
HDFC Bank is looking beyond its own ranks to fill the CFO position. The bank has approached CFOs from rival banks, particularly the top four private sector lenders in India. "The search process is in early stages and it may take a few more weeks to finalize a name," said a person aware of the CFO hunt.
Policy implications
Superannuation limit set by HDFC Bank
HDFC Bank's HR policies set the superannuation limit for key managerial personnel at 60 years. Vaidyanathan, who joined the bank in late 2018 as group head of finance before being elevated to CFO, is already on an extension. The board had decided in late 2024 to be very selective in granting extensions to employees beyond their superannuation limit. Recent cases where extensions weren't granted include V Chakrapani (former head of internal audit) and Vinay Razdan (former chief human resources officer).