Renu Sud Karnad feels non-stop growth can make an organisation complacent
HDFC Managing Director Renu Sud Karnad says non-stop growth can make an organisation complacent, eventually leading to stagnation.
HDFC Managing Director Renu Sud Karnad
Non-stop growth can make an organisation complacent, eventually leading to stagnation. This is what worried HDFC Managing Director Renu Sud Karnad all through the past year. Between 2006/07 and 2010/11, India's largest mortgage lender grew at a compound annual rate of 22 per cent, higher than the banking sector's 20 per cent rise. So she decided to revamp internal processes. Be it the delivery of loans, legal checks, or compliance issues, every service was overhauled to make it faster and customercentric.
"We spent a lot of time focussing on how to take service to another level," she says. Karnad also roped in global management consulting firm Boston Consulting Group for help. The results are visible. While staff count rose only seven per cent in 2011/12 from the year before, assets per employee grew 12.5 per cent. This shows HDFC disbursed more loans per employee. Other parameters were encouraging too - gross income surged 34.8 per cent while profit after tax rose 16.6 per cent in 2011/12.
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