After HDFC Bank was de-rated due to Aditya Puri's stake sale, Sanjay Dutt, director of Quantum Securities, on Thursday said private lender as an institution, is much larger than an individual.
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Dutt said, "I don’t think that de-rating is justified. Even if Puri has sold the stock, it doesn’t mean that the prospects of the bank change in any manner. That is an individual decision."
"Leadership does matter. These phases do come and go and you have underperformance. However, there is no doubt about it that HDFC Bank would continue to perform well," he added.
According to regulatory filings, Puri had sold shares worth Rs 842.87 crore of HDFC Bank. The share sale, which was executed between July 21 and 23, brought down Puri's holding in the most valued Indian lender to just 0.01 percent from the earlier 0.14 percent
The sale comes months ahead of Puri's retirement from the bank, which he led to become the largest by assets among private lenders and the second-largest overall over 25 years
He sold 74.20 lakh of the 77.96 lakh shares in the bank and Puri's remaining holding of the bank shares is now 3.76 lakh shares valued at over Rs 42 crore as of the last close.