Deepak Parekh passes the baton to ‘Sashi’ with ‘hope and anticipation’
Deepak Parekh, chairman of mortgage giant Housing and Development Finance, has restored confidence in Sashidhar Jagdeeshan, managing director and CEO of HDFC Bank, in his last contact with HDFC shareholders ahead of the merger with HDFC Bank, which takes effect in July. 1.
In a letter to shareholders, the seventy-year-old banker said: “With HDFC Bank’s proven execution capabilities, we are confident that Sashi, together with the leadership team, will forge an era of new opportunities for the combined entity… The time has come Lee Parekh said, “I hang up my shoes with both anticipation and hope for the future.”
HDFC, which provided retail housing finance in the country, said the loans will now be complemented by HDFC Bank’s core strengths: a sales engine, execution capabilities at scale, and deep insights into consumer behavior.
HDFC Bank has not yet guaranteed housing loans and only sells these products to HDFC.
“For HDFC Bank, a home loan customer represents the beginning of the journey to having a customer for good,” Parekh said, adding that the largest private lender is excited at the prospect of cross-selling its portfolio of assets and liabilities to home loan customers. “It will be done seamlessly on their digitization platforms – all through a one-click experience,” he added.
Parekh also touched on the issue of work culture, which is an important part of any merger.
“The work culture will be an amalgamation of the best of both organizations,” he said, emphasizing that culture in the workplace is always a shared responsibility.
He said that no institution has been as rich as 46 years of understanding the home loan product, which is the single largest investment a person makes in his/her life.
“Home loans as a financial product raise a strong emotional quotient,” he said. After the merger, most of HDFC’s employees will be part of HDFC Bank. Parekh asked the employees to embrace change and work as a team.
“To all of our employees transitioning to HDFC Bank, know that you will always carry the indelible ‘HDFC’ brand with you. This is the era of your new possibilities. Embrace change, stay as close-knit teams, be kind, and have each other’s backs. The future you realize.”