MUMBAI: HDFC Bank’s mortgage business head Arvind Kapil has filed papers to take charge as MD & CEO of Poonawalla Fincorp. Kapil is a 25-year veteran of HDFC Bank and was placed in charge of the legacy housing finance business of HDFC after its merger with the bank last year.
“Given the sheer size of the mortgage portfolio (Rs 7.5 lakh crore) and the material importance of distribution, we believe there is key managerial personnel risk (for HDFC Bank),” said Suresh Ganapathy of Macquarie. He noted that this is the second major exit in mortgages with the head of HDFC sales Santosh Nair quitting to join Bandhan Bank last month.
Poonawalla Fincorp, in a statement to stock exchanges, said that Kapil will join the company on June 24, subject to approvals. Shares of Poonawalla Fincorp rose 1.5% after the announcement. Before taking charge of the Rs 7.5-lakh-crore mortgage business at HDFC Bank, Kapil led the retail lending business at the bank, which included unsecured loan20s, auto loans, two-wheeler loans, retail working capital loans, gold loans, loans against shares, home loans, microfinance, and business loans.
“Given his leadership, execution skills and business acumen, (Current MD & CEO) Abhay Bhutada has been elevated to group level and will be taking up a strategic and larger role at the Cyrus Poonawalla Group for managing its strategy, investment and finance,” said Adar Poonawalla, chairman, Poonawalla Fincorp.
