Leadership Change at Poonawalla Fincorp Sparks Rally

18 Mar 2024 , 05:27 PM

On March 18, Poonawalla Fincorp saw a nearly 4% increase in value with the announcement that Arvind Kapil, the Group Head of HDFC Bank, would take over as Managing Director and Chief Executive Officer, beginning June 24, 2024, for a five-year term.

As the Group Head of HDFC Bank, Arvind Kapil is in charge of managing the whole portfolio of home loans, loans against property (LAP), and HDFC Sales Private Limited. His mortgage banking business has a book size of ₹7.5 Lakh Crore.

According to the NBFC, Abhay Bhutada, the company’s current MD and CEO, is retiring early.

Bhutada, however, will stay on the board as a non-executive director, the NBFC announced in a stock market statement. Abhay Bhutada has been promoted to group level, according to Poonawalla Fincorp, to assume a more strategic and significant role in managing strategy and finances at the group level.

Poonawalla Fincorp Chairman Adar Poonawalla stated: “We are happy to announce that Arvind Kapil will be joining us as MD and CEO, to spearhead this transformation to the next level of growth as we continue to develop new business verticals and move towards our long-term vision of being the best-in-class organisation.” At HDFC Bank, Kapil oversees a portfolio worth over seven lakh Crores of rupees and has successfully navigated the biggest merger in the sector.

An vital component of HDFC Bank’s growth story for over 25 years, Kapil is an alumnus of Harvard Business School with a postgraduate degree in management and engineering. He is recognised in the industry as a paradigm pioneer for spearheading digital lending innovations.

“Abhay Bhutada spearheaded and was instrumental in successfully transforming the entire company since its acquisition in May 2021,” Adar Poonawalla continued. In less than three years, he has strengthened Poonawalla Fincorp with his fantastic and extraordinary efforts, propelling the business quickly to its current exceptional state of things.

Abhay Bhutada has been promoted to group level and will be assuming a more strategic role at the Cyrus Poonawalla Group in order to manage its strategy, investments, and finances due to his leadership, execution abilities, and business acumen. He will remain a Non-Executive Director on the Poonawalla Fincorp Ltd. Board.

Poonawalla Fincorp had an AUM of over ₹21,000 Crore, outstanding asset quality, a CRISIL “AAA” rating, superior profitability, and diversified product portfolios under Bhutada’s direction. Bhutada has been leading the company’s transition since its acquisition in May 2021 and has played a crucial role in accelerating the business’s growth.

June 23, 2024, is Bhutada’s last day of employment as managing director of Poonawalla Fincorp.

Poonawalla Fincorp’s shares have increased by more than 74% over the last year and 28% over the last half-year. The company’s shares closed 1.9% higher on March 18 at ₹471.55 on the NSE.

“In addition, Kapil led HDFC Bank’s retail lending division, which covered a wide range of product categories, such as microfinance, business loans, gold loans, loans against shares, automobile loans, two-wheeler loans, and unsecured loans.

Mr. Kapil has over 25 years of distinguished expertise and has pioneered the use of digital technology to transform the customer experience. The company stated in a regulatory filing that “he has introduced ground-breaking innovations such as the industry-leading 10-second personal loan, along with digital loans against securities, digital loans against mutual funds, and digital auto loans.”

In addition to a Bachelor of Engineering (B.E.) from K. J. Somaiya College of Engineering, Mumbai, Kapil holds an Advanced Management Programme from Harvard Business School, a Master’s Programme in Management of Global Enterprises jointly from IIM Bangalore, UCLA Anderson, SDA Bocconi, and City University, a Masters in Management Studies from Bharati Vidyapeeth Institute of Management Studies and Research, and a Masters in Management Studies from Bharati Vidyapeeth Institute of Management Studies and Research.

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