MUMBAI: HDFC Bank CEO and CEO Aditya Puri It has sold more than 74 lakh of shares of the private lender to raise Rs 842.87 crore, according to regulatory documents.
The sale of shares, which took place between July 21 and 23, reduced Puri’s stake in the most valued one. Indian Lender just 0.01 percent from the previous 0.14 percent.
The sale comes months before the bank’s Puri retirement, which led it to become the largest asset among private lenders and the second largest overall in 25 years.
It sold 74.20 lakh of the bank’s 77.96 lakh shares and Puri’s remaining holdings of bank shares is now 3.76 lakh shares valued at more than Rs 42 crore until the last close.
A bank spokesperson explained that the shares were assigned to Puri over a period of time at different price points, noting that they were not awarded on par with the par value.
“The net value made by Puri is not as indicated. The cost of acquiring the shares and the tax to be paid in the transaction must also be taken into account, ”he added.
Puri had become the highest paid Indian banker in fiscal year 2019-20 with a 20% growth in gross profit to Rs 18.92 crore. He had also earned an additional crore of 161.56 rupees in fiscal year 2019-20 and a crore of 42.20 rupees in fiscal year 2019 by exercising his stock options, according to previous bank disclosures.
Shares of HDFC Bank have risen 46 percent since hitting their 2020 low of Rs 765 each on March 24, amid a massive sell-off due to fears about the COVID-19 pandemic. The script closed at 1,118.80 on the BSE on Friday.
Puri reportedly received 6.82 lakh of shares under the Employee Stock Ownership Plan (ESOP) in fiscal year 2020 and had also sold shares worth Rs 200 million in the bank’s subsidiary. HDB Financial Services in fiscal year 2020.
His term will end in October when he turns 70 and he will be the second executive director after Romesh Sobti of Banco Indusind retires this year.
Speaking at a bank annual general meeting earlier this month, Puri had said that his preferred successor had been with the bank for more than 25 years and it is now up to the Reserve Bank to confirm the name.
After embarking on a search for his successor, which included the appointment of an outside scout, the HDFC Bank board had decided earlier this year on possible successors and had sent their names to RBI in preference of your choice.
According to reports, bank change agent Sashidhar Jagdishan and wholesale bank chief Kaizad Bharucha are among the chosen internal candidates, while Sunil Garg of Citibank is among the three external candidates selected by the board.
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