 "Deepak Parekh")
Preserving the "HDFC way of working" is an agreed tenet of the HDFC-HDFC Bank merger, and the bank's leadership has publicly articulated it, Deepak Parekh said on Friday. Parekh, chairman of HDFC, has announced that he will hang his boots in conjunction with the merger.
In a letter to shareholders, Parekh wrote, "The confidence I derive is the agreed tenet of this integration -- preserving the fabric of the 'HDFC way of working'. This has also been publicly articulated by the leadership at HDFC Bank."
He added that the home loan business in India requires "immense patience" and is about "understanding the needs and feelings" of a customer. He added that the cross-selling of assets and liabilities of HDFC's home loan business would be done "seamlessly" through their digital platforms.
"For HDFC Bank, a home loan customer marks the beginning of a journey of having a customer in perpetuity. HDFC Bank 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 said.
Citing optimism in India, Parekh said it had shown resilience with its broad-based recovery.
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"India's position has been further strengthened with cyclical and structural tailwinds. The country's GDP growth rate is likely to be more than double that of global growth. We are extremely confident that the runway for housing finance in India will remain immense for several years to come," he said.
Parekh also said that working on the merger has been "challenging and rewarding". Yet he was "amazed" to see the goodwill and the strong relationships it has built.
"Whenever and wherever we reached out for guidance, doors opened and help was at hand instantly. We have worked with possibly the country's best legal teams, chartered accountants, valuers, bankers, advisors and other specialised professionals. The collective knowledge and experience of all these parties is unparalleled," he added.
"The orchestration of this merger is to ensure that the future is not constrained for any of our stakeholders," he added.
He also said that since the deal's announcement, the companies have often been asked about the rationale behind the merger. "My answer to this is that mergers are inherently about change," he said.
On work culture at the merged entity, Parekh said that it would be "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. What remains steadfast is the underlying ethics and value systems of both entities," he said.
Parekh also acknowledged the role of HDFC Bank chairman Atanu Chakraborty and the board of directors in the whole process.
"The HDFC experience is invaluable. Our history cannot be erased and our legacy will be taken forward," he added.
