In a move that could expedite the integration process, nearly 70% of the senior management of HDFC will not join the combined entity, HDFC Bank, post-merger, The Times of India reported. The absence of senior executives from HDFC is expected to facilitate a more seamless integration process, driven by the bank leadership.
Senior Management Transition
Of the top 20 executives of HDFC, only three will join HDFC Bank. These include V. Srinivasa Rangan, who will be the bank’s executive director, Sudhir Jha, the former chief legal officer, and Ajay Agarwal, HDFC’s former company secretary. As part of the merger, around half a dozen senior executives will continue working with the merged entity as consultants, although they will not be officially on the bank’s rolls.
Integration Process and Employee Transition
To ensure fair and transparent practices, HDFC Bank engaged independent external experts who assisted an internal committee in fixing designations and pay scales for about 4,000 HDFC employees. The bank plans to review the appointments while allowing employees an opportunity to voice any grievances they may have.
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Impact on Home Loan Customers
Home loan customers are unlikely to face any major changes as loan sourcing will continue through the bank, and HDFC offices will continue processing them. The biggest change for home loan customers post-merger is that loans are now linked to the RBI’s repo rate.
Timeline for Complete Integration
As HDFC Bank is currently in a “quiet period” ahead of results, it has not yet communicated a specific timeline for complete integration. The bank will announce its June quarter results on July 17, addressing investor queries to provide clarity and transparency regarding the merger.
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