The offer letter states that Parekh was given a basic salary of Rs. 3,500 plus a set Dearness Allowance of Rs. 500 in 1978. Along with his income, Deepak Parekh was also entitled to a 10% City Compensatory Allowance and a 15% Housing Rent Allowance.
NEW DELHI: One of the most significant changes in the banking industry in recent years was the merger of HDFC Bank and Housing Development Finance Corporation (HDFC Ltd), which took effect on July 1. The much-discussed merger has made the HDFC Bank the largest bank in the nation in terms of market capitalization. Deepak Parekh, the former chairman of HDFC Bank, resigned from his position just one day before the merger and informed the bank's staff in an emotional note that it was "time to hang my boots."
"It's time for me to put up my boots, full of hope and expectation for the future. We now step boldly into a very exciting future of growth and prosperity, even though this will be my final letter to HDFC shareholders. The expertise of HDFC is priceless. Our legacy will continue, and our past cannot be forgotten, Parekh wrote in his letter of resignation.
Soon after, a social media post purporting to be a 45-year-old letter from 1978, the year Deepak Parekh received his first employment offer from the HDFC Bank, went viral. The letter, which was sent on July 19, 1978, also included information about the pay Deepak Parekh was given at the time as well as other terms and conditions of the job contract.
At that time, Parekh worked as the deputy general manager for his uncle's company, HDFC Limited. The offer letter states that Parekh was given a basic pay of Rs. 3,500 plus a set Dearness Allowance of Rs. 500. Along with his income, Deepak Parekh was also entitled to a 10% City Compensatory Allowance and a 15% Housing Rent Allowance.
According to the letter, Deepak Parekh was also given the option to accept the corporation's Provident Fund, a gratuity, medical insurance, leave travel options, and payment for home phone costs. Due to age restrictions set by the RBI, Parekh won't be able to continue serving on the bank's board after the merger.
In the 45 years of his career, Parekh has overseen the IPO of five businesses and the completion of at least seven M&A transactions. Under Parekh, HDFC has given housing loans to more than NINE million Indians and increased the size of its loan portfolio to Rs. 7.24 lakh crores. More than a third of the whole home loan market is currently controlled by the mortgage lender.
On April 4 of last year, HDFC Bank approved the USD 40 billion transaction. Existing HDFC stockholders now possess 100% of the bank, making up 41% of the total ownership of the HDFC Bank. Following the merger, the market value of the bank dramatically increased, making it the richest bank in India. The market value of HDFC Bank as on July 7 was Rs 9,28,657.99 crore.
