Parekh To Be HDFC Chief For 3 More Yrs

Mumbai, June 26: | Updated: Jun 27 2003, 05:30am hrs
Housing finance major Housing Development Finance Corporation (HDFC) has extended the service of chairman Deepak Parekh, who has been at the helm of the company for the last 10 years, for another three years with effect from March 2003.

The corporation is also extending the service of one of its executive directors, Renu S Karnad, for another five years with effect from March 2003.

Deepak Parekh
Besides, the corporation is revising upwards the remuneration package of its top management, including Mr Parekh, managing director KM Mistry and two executive directors Ms Karnad and Mr RVS Rao. The package will be in the range of Rs 80,000 to Rs 4,00,000 per month.

Further, as a part of the remuneration package, commission per annum to each of the managing/executive directors will be equivalent to their respective salaries or such other sums as may be fixed by the board of directors, subject to a ceiling of one per cent of the net profit of the corporation. Additionally, perquisites per annum to each of the managing/executive directors will be equivalent to their respective annual salaries.

Currently, Mr Parekh and Mr Mistry receive a salary of Rs 2,00,000 and Rs 1, 75,000 per month, respectively. Mr Rao and Ms Karnad get Rs 1,50,000 per month.

HDFC will seek the approval of its shareholders on the service extension of Mr Parekh and Ms Karnad and raising the remuneration package of its top management in the forthcoming annual general meeting on July 18.

Mr Parekh, who joined the corporation in a senior management position in 1978, was elevated as wholetime director of the corporation in 1985 and was later appointed as the chairman in 1993.

Meanwhile, FII holding in the HDFC has gone up by almost five per cent to 52.03 per cent, while foreign direct investment (FDI) in the corporation has declined marginally to 21.75 per cent from 22.37 per cent. Mutual funds have raised their stake in HDFC from 0.73 per cent to 2.60 per cent.

The shareholding of insurance companies is at (5.20 per cent), domestic companies (2.37 per cent), banks (0.34 per cent), resident Indians (15.50 per cent). The Unit Trust of India has pared its stake in HDFC to 1.92 per cent from 4.52 per cent, while SLAC-Mauritius Holding has hiked its stake to 14.53 per cent from 9.79 per cent in 2002-03.