MC EXCLUSIVE HDFC Bank’s Parag Rao superannuates this week; portfolio to be spilt into smaller functions

HDFC Bank

HDFC Bank’s group head of payments, consumer finance, liability product Parag Rao will superannuate this week after the board decided against granting him a two-year extension, sources have told Moneycontrol.

Email sent to bank did not elicit immediate response. The story will be updated when the response comes in.

The bank follows a superannuation policy of 60 years. However, until recently, the bank is said to have been giving some of its employees a two-year extension. "Lately the bank's board has opted against given an extension to employees, which is probably why Rao has decided to move on from the bank," said a person aware of the matter.

Since Rao handles a vast portfolio, some of his responsibilities could be split and handed over to a new set of leadership team. "That is currently in the process," another source said.

An HDFC old timer 

Rao, who joined HDFC Bank in 2002, holds key portfolios such as payments, consumer finance, liability product group, third party products (TPP), alternate banking channel & partnership products (ABCP), non-resident products, government & institutional business (GIB) and GIG Banking. He is also responsible for central marketing at the country's largest private bank.

The payments business includes debit cards, credit cards, prepaid and commercial cards, merchant acquiring services, digital payments such as UPI, mobile Banking, NEFT, RTGS, IMPS and consumer finance business, the bank’s website says.

Rao joined HDFC Bank as head of sales & distribution – credit cards. He is seen as the person instrumental in building HDFC Bank's payments business.

"In fact when the bank was banned from onboarding new credit card customers, he ensured that the bank never slipped from the No.1 position in terms of card spends and soon as the ban was removed, he played a huge role in bring back the volumes growth for HDFC Bank's credit cards business,"  said a banker who didn't want to be named.

The RBI in December 2020 had asked HDFC Bank to stop all launches of its digital business-generating activities and sourcing of new credit card customers after repeated outages at its data centre which impacted operations. The RBI had also directed the bank board to examine the lapses and fixes accountability.

On March 22, 2022, the RBI lifted restrictions on the new digital business-generating activities under its Digital 2.0 programme.

Third in a row

Rao's would be the third  high profile exit from the bank in a year. V Chakrapani, group head- change agent, superannuated on January 31 after serving at the bank for 30 years.  On June 18, Vinay Razdan resigne das the chief human resource officer.