Deepak Parekh quits HDFC, ahead of merger says 'it's time to hang my boots'

HDFC chairman Deepak Parekh announced on Friday that he would be “hanging his boots  in his last letter to the shareholders ahead of the HDFC and HDFC Bank merger. Deepak Parekh expressed a strong conviction that the alliance between HDFC Bank and its group entities would strengthen further as the bank assumes ownership of the group through an anticipated reverse merger. The reverse merger of parent HDFC Ltd, with HDFC Bank is expected to be effective from July 1.

It is my time to hang my boots with both anticipation and hope for the future," Parekh told shareholders. "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," Parekh added.In a rather emotional letter, Parekh said the HDFC experience is invaluable. "Our history cannot be erased and our legacy will be taken forward," said the veteran banker.The merger of HDFC with Bank will offer cross-selling opportunities to the bank, while the home-loan business will be complemented by the bank’s core strengths, Parekh said in the letter.

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," the HDFC chairman said in the letter.

Parekh said HDFC Bank’s vast distribution network will be better harnessed for both home loans and the group companies.  "As a natural progression, the synergies between HDFC Bank and the group companies will deepen with HDFC Bank taking on the mantle of ownership," Parekh said.Further, Parekh said what the future holds, only time will tell but the biggest risk organisations face today is staying with the status quo, believing what worked well yesterday will continue in the future."Change takes courage as it displaces one from the cocoon of comfort and familiarity.  Yet, with change comes the power of adaptability, growth and new aspirations.  The orchestration of this merger is to ensure that the future is not constrained for any of our stakeholders," Parekh added.