HDFC Bank making changes to top management after mega merger

The bank is restructuring its information technology and digital functions, now reporting directly to CEO Sashidhar Jagdishan, the report said citing sources who requested anonymity.

Ashish Parthasarthy, a long-standing bank executive overseeing treasury since 2009, will now take charge of the crucial retail branch business, responsible for deposits and product distribution, it added.

The bank's shares have faced pressure since its acquisition of Housing Development Finance Corp. in July, which positioned HDFC as one of the world's largest banks, said the report.

It also received a rare downgrade from Nomura Holdings last month, citing concerns over HDFC's return on assets and loan growth challenges.

The merger between HDFC and the country's largest mortgage lender, valued at approximately $60 billion, was initiated in April to capitalize on the surge in home loans and consumer spending in India, the world's fastest-growing major economy.

The move followed a regulatory proposal for large non-banking finance companies to convert into banks, aiming to prevent a recurrence of the significant shadow lending crisis in 2018.

Under Parthasarthy's leadership, the bank is restructuring the geographical management of its retail branch business to facilitate expansion and product development in a more organized manner, co-led by Smita Bhagat and Sampath Kumar.

Smita Bhagat, a prominent leader at the bank, previously oversaw government and institutional business, ecosystem banking, inclusive banking, and start-ups. Kumar served as the group head of liability products, third-party products, and non-resident business at the bank.