HDFC merger: Ex-chairman Deepak Parekh's offer letter shows first salary was… - Hindustan Times

HDFC merger: Ex-chairman Deepak Parekh's offer letter shows first salary was…

Jul 06, 2023 07:20 AM IST

According to the offer letter, Parekh was offered a basic salary of ₹3,500 plus ₹500 as dearness allowance.

Amid HDFC Merger, Deepak Parekh's Offer Letter Goes Viral. His Salary Was…

Deepak Parekh, former chairman of Housing Development Finance Corporation(HDFC) Ltd.(Hemant Mishra/Mint)
Deepak Parekh, former chairman of Housing Development Finance Corporation(HDFC) Ltd.(Hemant Mishra/Mint)

Ahead of the mega merger between HDFC and HDFC Bank, its chairman Deepak Parekh resigned and shared an emotional note with employees. Soon, a post claiming to be Parekh’s first offer letter at HDFC Bank went viral. Dating back to July 19, 1978, the letter details Parekh’s salary and terms of the employment contract.

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Read: Deepak Parekh steps down as HDFC chairman. Read full statement to shareholders

Appointed as the deputy general manager, as per the letter, Parekh was entitled to a basic salary of 3,500 plus 500 as fixed dearness allowance. The 45-year-old letter also shared the breakdown of 15 per cent housing rent allowance (HRA) and a city compensatory allowance at 10 per cent.

The 78-year-old, who joined his uncle’s firm, was also offered the corporation's Provident Fund, gratuity, medical benefits, leave travel facilities, and reimbursement of residential phone expenses.

HT could not independently verify the authenticity of the letter.

After a 45 year-long career with HDFC, Parekh will not be serving on the bank’s board, owing to the Reserve Bank of India (RBI) restrictions on age. Parekh has been credited with taking five companies public and HDFC has provided more than nine million Indians with home loans under his leadership.

The merger came into effect on July 1, making HDFC the fourth largest bank in the world after it took over its parent - India’s first home finance company - HDFC.

Read: HDFC, HDFC Bank merger was worth $64 billion. Guess how much advisers made

HDFC Bank agreed to the $40 billion deal on April 4 last year. Now, HDFC Bank is 100 per cent owned by public shareholders, and existing shareholders of HDFC own 41 per cent of the bank.

July 13 is the record date for the merger. From July 14 onwards HDFC shares shall stop trading. All shareholders shall get 42 shares of HDFC bank for every 25 shares held in HDFC Ltd. Post the merger, HDFC bank will be the country's biggest private bank.

"It is my time to hang my boots with both anticipation and hope for the future. 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. The HDFC experience is invaluable. Our history cannot be erased and our legacy will be taken forward," Parekh told shareholders in his retirement letter.

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    Multimedia journalist with Hindustan Times. Covers India, world, business and tech news with a keen eye for human-interest stories rooted in gender and culture.

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