HDFC, Tatas and L&T are three systemically important, Board run, professionally managed, promoterless company. Of these, Tatas have a well-meaning and worthy leader in Noel Tata at the helm now. By taking govt support in the tussle at the Trust – some trustees have been eliminated. The other two now need an immediate leadership change.
HDFC is core to stability of our banking system and thus to our economy. L&T makes the nuclear reactors. Tatas are attempting to do EVs and also run Air India.
The objective of the 30 part OTT series on HDFC and the 10 part each series on L&T and Tatas – is to present the facts, churn the pot for thinkers and catalyse public policy changes which will prevent three key events:
– rise of undesirable leaders who may get control of these organisations because of failures of selection committees who are human. There are few shareholder activist firms and once appointed – these individuals have the massive resources of those organisations to help retain their posts.
– induction of inappropriate individuals as independent companies in these companies. A complete disaster was when a person who was removed as CEO of a Bank by RBI became a trustee of Tata Trust as well as an independent board member of L&T. Who proposed his name ? And how was the approval done. He was required to pass the independent directors exam ? When did he do so and how is the annual report of the company not reporting this especially when the earlier report specifically mentions that he is not exempt from the same.
– HDFC Bank BoDs reshuffle has some deeper stories:
. Most of the executive directors and non executive directors, including the current chairman are significant retail shareholders of the bank – their independence is highly questionable.
. Most of the non-executive directors are IDs in other lending and investment institutions of the group and outside the group e.g Ponawalla, Wework etc where they are also investors.
. The prominent non executive directors are also non executive directors of HDFC Capital Advisors which is a real estate funding platform.
How were these Directorships approved. They should have made these non executive directors to step down from other BoDs . Plus they should have been made to sell their HDFC Bank shares at current market price to occupy the BoDs seat at the Bank.
Yet at the same time, one needs to verify the facts. And authentic information where available in the public domain. Also one should put out the facts for consultation and verification. Like show cause the individuals and companies to provide their side of the story. And any public content should include both the charge and the stated defence. And if the defence has merit, then the video series should record the same.
Please repost to get views from a wider cross section of the intellectual and investor community.
The appended images have details of the next six episodes for HDFC.
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2026