HDFC Bank chief Puri sells shares worth $113 million in lender

Puri sold the shares in the market from July 21-23, according to an exchange filing. He had nearly 7.8 million shares in the lender prior to the sale, the filing showed, and now holds about 0.01% of the bank’s equity capital.

HDFC Bank Ltd.’s Managing Director Aditya Puri reduced his holdings in the lender, selling 7.4 million shares for 8.43 billion rupees ($113 million).

After 26 years at the helm of the nation’s second largest bank, Puri is set to retire in October when he turns 70, the age limit set by the Reserve Bank of India for private bank chiefs. (Mint/ File photo)

Puri sold the shares in the market from July 21-23, according to an exchange filing. He had nearly 7.8 million shares in the lender prior to the sale, the filing showed, and now holds about 0.01% of the bank’s equity capital.

The shares were alloted to Puri at different times and at different prices and the amount realized by him was lower than 8.4 billion rupees after accounting for tax and acquisition costs, a spokesman for the bank said in a statement.

After 26 years at the helm of the nation’s second largest bank, Puri is set to retire in October when he turns 70, the age limit set by the Reserve Bank of India for private bank chiefs. The lender is awaiting the RBI’s approval for one of the three candidates shortlisted to succeed him.

Shares of the nation’s most valuable lender have fallen by around 12% so far this year, compared with a 30% decline in the banking gauge. The bank has been able to ring-fence itself during a prolonged shadow banking crisis that started two years ago. It has also maintained its strong growth momentum in the last few months even as the overall financial sector faced massive stress from the impact of the coronavirus pandemic.

However, the lender has come under the scrutiny of the central bank on allegations of improper lending at its vehicle-lending business.