In his last letter to shareholders before the merger of HDFC and HDFC Bank, HDFC chairman Deepak Parekh on Friday said that he would be “hanging his boots”. The merger is expected to take effect on July 1.“It is my time to hang my boots with both anticipation and hope for the future,” Parekh said in a parting letter to shareholders.
“While this will be my last communication to the shareholders of HDFC, rest assured we now stride tall into a very exciting future of growth and prosperity. The HDFC experience is invaluable. Our history cannot be erased, and our legacy will be taken forward,” he said.Earlier, HDFC had announced that the boards of the company and HDFC Bank would meet on Friday to approve the merger.
In April 2022, HDFC Bank had announced that it would take over India’s largest mortgage lender for around $40 billion. With an asset base of around Rs 22 trillion, the merged entity will be India’s second-largest lender. It will rank fourth in equity market capitalisation behind JPMorgan Chase & Co, Industrial and Commercial Bank of China, and Bank of America Corp.
Parekh noted that HDFC’s vast distribution network will help HDFC Bank cross-sell mortgage loans. Additionally, the synergy between HDFC Bank and HDFC group companies will deepen.Here, he believes that HDFC Bank will utilise its core strengths of sales engine, execution capabilities at scale, and deep insights into consumer behavior to cross-sell a wide range of asset and liability products to home loan customers.
HDFC is India’s first retail housing finance company.“Our experience has taught us that every home loan customer has their own story, and it is the empathy factor that is the key differentiator between housing finance providers,” says Parekh.
“Dealing with home loan customers requires immense patience. It is about understanding the needs and feelings of a home loan customer, assuaging their anxiety during this complex transaction, customising solutions, explaining financial implications of a mortgage product, and lending responsibly to ensure a customer is not overstretched.
”Going ahead, Parekh expressed hope that the core HDFC principles of kindness, fairness, efficiency, and effectiveness become further entrenched in the bank’s psyche.
With as much as 90% of HDFC staff being absorbed by the bank, Parekh urged these employees to embrace change, continue to work as close-knit teams, and to be kind.
“The work culture will be an amalgamation of the best of both organisations. Culture at the workplace is always a shared responsibility. It needs daily reinforcement through the demonstration effect with the tone set at the top.”