Role Of Leadership For Sustainability In Indian Banking: A Case Of HDFC Bank

Abstract

A fragmented and inefficient banking has been a challenge for sustainable and inclusive growth in India. The largest democracy in the world needs robust, efficient and technology driven banking to reap the benefits of economies of scale, scope and inclusion. HDFC bank has announced merger with HDFC. The paper examines the impact of leadership on sustainability in Indian banking with reference to HDFC Bank. The approach of leadership towards sustainability is reviewed using published sources about the founding managing Director and HDFC Bank. The impact of merger announcement on stock price is evaluated using daily returns before and after merger announcement. It was found that sustainability has become a part of work culture of HDFC Bank led by the visionary Mr. Aditya Puri. There was a significant decline in the daily returns of stock price of both HDFC Bank and HDFC after merger announcement. The merger has potential to generate sustainable inclusive growth in the long term.