In a letter to the company’s investors on Friday, HDFC Chairman Deepak Parekh announced his retirement, according to CNBC TV18. NBC18 CNBC. Parekh, who has worked for the company for 46 years, had previously stated that he will leave his post on June 30 after HDFC and HDFC Bank merged.
On June 30, a meeting of the boards of HDFC and HDFC Bank was planned to approve the merger.
“It is my time to hang my boots with both anticipation and hope for the future. While this will be my last communication to shareholders of HDFC, rest assured we now stride tall into a very exciting future of growth and prosperity. The HDFC experience is invaluable. Our history cannot be erased and our legacy will be taken forward,” as per report, he wrote in the letter. “We are extremely confident that the runway for housing finance in India will remain immense for several years to come,” he said
The merger of HDFC Bank and HDFC, called the largest transaction in India’s history, was announced on April 4, 2022. According to data provided by Bloomberg, the proposed merger of HDFC Bank and Housing Development Finance Corp (HDFC) will result in a lender that is ranked fourth in terms of stock market capitalization, behind JPMorgan Chase & Co., Industrial and Commercial Bank of China Ltd., and Bank of America Corp. It is estimated to be worth $172 billion. After a merger, the corporation will for the first time be counted among the most valuable banks in the world.
Once the agreement is in place, existing HDFC shareholders will own 41% of the bank, making public shareholders the sole owners of HDFC Bank.
Home loans will now be complimented by HDFC Bank’s fundamental competencies, including its sales engine, execution capabilities at scale, and deep insights on consumer behaviour, according to Parekh’s final speech to shareholders in his capacity as chairman of HDFC Ltd.
“For HDFC Bank, a home loan customer marks the beginning of a journey of having a customer in perpetuity. HDFC Bank is excited at the prospect of cross-selling an array of asset and liability products to home loan customers. This will be done seamlessly on their digitalisation platforms – all through a one-click experience,” he said.
A Look At The Contribution Of Deepak Parekh
A pillar of Mumbai’s financial community, Deepak Parekh, has had a lasting impact on HDFC, the organisation to which he devoted 45 years of his life. Parekh has been an institution-builder and a problem-solver, beginning his career under the tutelage of his illustrious uncle, the renowned HT Parekh, and eventually occupying the coveted corner office.
During his lengthy tenure, Parekh’s unbounded enthusiasm infiltrated HDFC, driving the mortgage juggernaut to a phenomenal market capitalization of over Rs 5 lakh crore, according to a Financial Express story.
According to the research, Parekh’s vision and commercial acumen led HDFC to diversify into new markets, such as banking, asset management, and insurance, setting a precedent for the sector.
It was clearly a difficult assignment to persuade the board to take on new ventures and adopt a new management structure for the bank, but Parekh’s leadership and persuasion abilities prevailed, according to the study.
One of Parekh’s notable accomplishments was the process of HDFC becoming a bank, according to the FE report. Thanks to its excellent application, HDFC was successful in obtaining a banking licence through an advertisement and was able to locate its headquarters in Mumbai.
It added that former HDFC Bank MD and CEO Aditya Puri frequently commended Parekh for giving him freedom while offering assistance when required. Numerous notable honours, including the Businessman of the Year title in 1996, the JRD Tata Corporate Leadership Award, the Qimpro Platinum Award for Quality, the Corporate Award for Lifetime Achievement, and the coveted Padma Bhushan, have recognised Parekh’s outstanding efforts.
Parekh’s appointment as the chairman of the Advisory Group for Securities Market Regulation by the Reserve Bank of India highlighted his comprehensive knowledge of market dynamics and legal frameworks. In addition, he presided over an expert committee formed by the Ministry of Power and charged with leading reform initiatives in the power industry.
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