Private sector lender HDFC Bank’s managing director (MD) Aditya Puri sold 95 per cent of his shareholding in the bank valued at Rs 842.7 crore. Puri held 0.14 per cent stake or about 7.8 million shares in the bank, out of which he sold 7.42 million shares between July 21 and July 23.
Puri, the longest serving MD of a private bank in India, has been at the helm of HDFC Bank for the last 26 years, since its inception in 1994. He will hang up his boots this October when he reaches the maximum age limit of 70 for a CEO of a private bank.
Puri took home an annual salary of Rs 18.92 crore in 2019-20, which was 38 per cent higher than in the previous year and emerged as the highest paid banker among the top private lenders. He exercised stock options of Rs 161.56 crore during the year, according to the bank’s FY20 annual report.
“The shares were allotted to Puri at different times, at different price points (not at par). Acquisition cost and tax has to be accounted for as well. The net amount therefore will be much less,” said the spokesperson of HDFC Bank.
According to stock exchange filings by the bank, Puri exercised 3.42 million stock options at an acquisition cost of Rs 158 crore between October 2015 and July 2020, and sold 9.65 million shares, including last week’s sale, for Rs 1,165 crore.
HDFC Bank has shortlisted three potential candidates for the position of managing director, after Puri demits office. The bank is awaiting Reserve Bank of India’s (RBI’s) approval on the CEO. The bank’s board had set up a search committee, comprising Shyamala Gopinath, Sanjiv Sachar, MD Ranganath, Sandeep Parekh, Srikanth Nadhamuni, and Keki Mistry, to look for Puri
successor. Puri was an advisor to the search committee.