The bank maintains a 60-year superannuation policy for its staff, albeit there are reportedly certain exceptions that are approved on an individual basis.
According to sources who spoke to Moneycontrol, Parag Rao, the group head of payments, consumer finance, and liability products at HDFC Bank, will superannuate this week after the board opted not to give him a two-year extension.
The bank did not respond to the email right away. When the answer is received, the story will be updated.
The bank has a 60-year superannuation policy. But according to reports, the bank was extending the contracts of some of its workers by two years until recently. According to someone with knowledge of the situation, “the bank’s board has recently chosen not to grant staff an extension, which is most likely why Rao has chosen to leave the bank.”
A new leadership team might take up part of Rao’s duties since he manages a large portfolio. Another source said, “That is now in the process.”
Since joining HDFC Bank in 2002, Rao has held important portfolios that include government & institutional business (GIB), third-party products (TPP), payments, consumer financing, liability product group, alternative banking channel & partnership products (ABCP), non-resident products, and GIG Banking. At the biggest private bank in the nation, he is also in charge of central marketing.
According to the bank’s website, the payments business include digital payments including UPI, mobile banking, NEFT, RTGS, IMPS, and merchant acquiring services, as well as debit, credit, prepaid, and commercial cards and consumer financing.
Rao became the chief of credit card sales and distribution at HDFC Bank. He is considered to have played a key role in the development of HDFC Bank’s payments division.
According to a banker who wished to remain anonymous, “he actually made sure that the bank never lost its top spot in terms of card spends when it was prohibited from onboarding new credit card customers, and as soon as the ban was lifted, he played a huge role in bringing back the volumes growth for HDFC Bank’s credit cards business.”
Following many data center disruptions that affected operations, the RBI requested in December 2020 that HDFC Bank halt all of its digital business-generating initiatives including the acquisition of new credit card clients. Additionally, the RBI has instructed the bank board to investigate the shortcomings and establish responsibility.
Under its Digital 2.0 initiative, the RBI removed limitations on new digital business-generating activities on March 22, 2022.
Third consecutively
Rao’s departure would be the bank’s third high-profile departure in a single year. After 30 years with the bank, V Chakrapani, the group leader and change agent, superannuated on January 31. Vinay Razdan, the chief human resource officer, resigned on June 18.