HDFC Bank и Kotak Mahindra Bank готовятся сменить руководителей на фоне падения котировок

When Infosys appointed Ashiss Kumar Dash as Salil Parekh’s successor it happened quietly without much speculation. Same was the case with Sandhya Devanathan who recently jumped ship from Meta to OpenAI; it happened quietly. Leadership transition in any other sector has been equally stable and far from sensational. But when it comes to banking sector, it’s never been the case. Waves of speculation, multiple names emerging and constant headline grabbing have become a standard feature every time there is a change in leadership in the banking sector. Interestingly, two banks of different sizes are now facing the same problem - HDFC Bank and Kotak Mahindra Bank. The current CEOs have offered to step down, and the similarity between the two is that both - Shashidhar Jagdishan and Ashok Vaswani- are the second CEOs that the banks have had. Other similarity between them is that the financial performance under the current leadership has been sub-par, and the same is reflected in the stock prices. From market movers in terms of valuations, today both banks have seen a massive reset in their asking price. Should the outgoing CEO take the blame for this? Filling big shoes More than this being the problem of the existing CEO, it’s also the problem of having inherited a huge task from a person of tall stature. Aditya Puri of HDFC Bank and Uday Kotak of Kotak Mahindra Bank continue to remain iconic figures in the banking sector. Uday Kotak, in particular, has the distinction of being one of the few remaining founders of a bank. Stepping into the shoes of either Puri or Kotak isn’t an easy task. How does one align the teams to what the new CEO’s vision is, and more importantly, when the foundation has been set by such iconic people, is it even possible for the new CEO to have his own vision becomes an even larger question to ask. The successor’s dilemma The person is stuck in a situation of damned if you do, and damned if you don’t. This was particularly an issue with Jagdishan, while Vaswani still managed to bring about some changes. The other big challenge in filling big shoes is the ability to see through the cracks. Here again, maybe Vaswani had an edge over Jagdishan, as being an outsider, he could be more objective in his assessment versus an insider’s view. But then again, it boils down to how much one can defy practices that have been set over time, especially ones coded by bankers considered as industry giants. Lack of succession Until 2020, no banker thought of the possibility of change. While banks had a superannuation age, it was more on paper for the CEOs and not practice. In 2020, the RBI made it clear that no CEO is forever. A year later it brought about regulations to say that at best a CEO’s tenure should only be 15 years. To that extent, succession planning in banking sector is a relatively new arena. But unfortunately, despite succession planning now becoming a reality, it’s not among the top priorities for most boards. It is something that boards start pouring over closer to the deadline rather than making it a continuous process. This explains why an internal candidate to succeed Jagdishan at HDFC Bank is not in the immediate line of sight. Kotak Bank scores slightly better as it is perceived to be a toss-up between a thoroughbred internal candidate and a supposed external candidate. Nonetheless, both banks are set to welcome their third CEO since its inception and the challenge that lies ahead of the new CEO is no different from what the predecessor faced – that of filling the big shoes. While HDFC Bank seems to need an overhaul of some of its practices, Kotak Bank needs continuity, albeit with some changes. Will the incoming CEOs get adequate support of the board to do what they are sent in for, or will an individual prevail? That will define how successful the new CEO emerges. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated! Find the best of Al News in one place, specially curated for you every weekend. Stay on top of the latest tech trends and biggest startup news.