Deepak Parekh passes the baton to 'Sashi' with 'hope and anticipation'

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Deepak Parekh, chairman of mortgage behemoth Housing Finance and Development Corporation, reposed confidence in Sashidhar Jagdishan, managing director and chief executive officer of HDFC Bank, in his last communication with HDFC shareholders ahead of the merger with HDFC Bank, which comes into effect on July 1.

In a letter to shareholders, the septuagenarian banker said, “With the proven execution capabilities of HDFC Bank, we are confident that Sashi, together with the leadership team, will forge an era of new opportunities for the combined entity… It is my time to hang up my boots with both anticipation and hope for the future,” said Parekh.

HDFC, which introduced retail housing finance in the country, said loans will now be complemented with HDFC Bank’s core strengths: a sales engine, execution capabilities at scale, and deep insights into consumer behaviour.

HDFC Bank has not underwritten home loans to date and only sells such products for HDFC.

“For HDFC Bank, a home-loan customer marks the beginning of a journey of having a customer in perpetuity,” said Parekh, adding the largest private sector lender 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 added.

Parekh also touched upon the issue of work culture, which is seen as a crucial piece in any merger.

“The work culture will be an amalgamation of the best of both organisations,” he said, emphasising that culture at the workplace is always a shared responsibility.

He said no institution has the richness of 46 years of understanding of a home loan product, which is the single largest investment a person makes in his/her lifetime.

“Home loans as a financial product evoke a strong emotional quotient,” he said.After the merger, mostemployees of HDFC will be part of HDFC Bank. Parekh asked employees to embrace the change and work as a team.

“To all our employees transitioning to HDFC Bank, know that you will always carry the indelible mark of ‘HDFC’ with you. This is your era of new possibilities. Embrace change, continue to work as close-knit teams, be kind, and have each other’s backs. The future is yours to grasp,” he added.