Ku­mar’s IDFC Bank Exit Raises Eye­brows

The Economic Times - - Commodities Plus - Our Bu­reau

Mum­bai: Naval Bir Ku­mar, head of con­sumer banking at IDFC Bank, has quit the fledg­ling lender just a few months af­ter the launch of oper­a­tions due to what the com­pany said were “per­sonal rea­sons”. The tim­ing, how­ever, has raised spec­u­la­tion in the in­dus­try on whether it was over the strat­egy be­ing adopted by the bank on how it will com­pete with es­tab­lished lenders, said a per­son who did not want to be iden­ti­fied.

“This is in­cor­rect and spec­u­la­tive, Naval Bir Ku­mar has de­cided to move on for purely per­sonal rea­sons,” IDFC Bank said in an email re­sponse to ET. The bank’s con­sumer banking busi­ness will be man­aged by its chief ex­ec­u­tive Ra­jiv Lall, while Ku­mar will help with the tran­si­tion, the bank said. Ku­mar had spent about 8 years in the group. In ad­di­tion to his role in con­sumer banking, he was also vice-chair­man of IDFC Asset Man­age­ment Com­pany, erst­while ANZ Grind­lays AMC which he led since its in­cep­tion. Ku­mar was part of the team that worked to help IDFC get the bank li­cence and pre­pared the pitch for the reg­u­la­tor. IDFC Bank, which was launched on Oc­to­ber 1 last year, opened its con­sumer banking di­vi­sion for pub­lic only in Jan­uary this year. While it has opened 48 branches, a bulk of them are fo­cused on its ru­ral banking busi­ness.

“You can’t run be­fore you walk,” Ra­jiv Lall had told ET in a re­cent in­ter­view on be­ing asked whether he was happy with the progress in the con­sumer banking seg­ment.

“So, could we be walk­ing faster; yes, I mean ev­ery par­ent wants their child to be walk­ing by the time they are six months old. So, we are in the same jour­ney. We will try to ac­cel­er­ate that process but be­yond a point it’s dan­ger­ous to try and ac­cel­er­ate it. You don’t want to cut cor­ners.”

The tim­ing has raised spec­u­la­tion in the in­dus­try on whether it was over the strat­egy be­ing adopted by the bank on how it will com­pete with es­tab­lished lenders

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.