If you are a shareholder of what from Saturday (July 1) might cease to be the largest housing financier in the country — Housing Development Finance Corporation or HDFC Ltd, and your eyes welled up while reading the letter from Deepak Parekh, the company’s chairman, you are probably not alone.
In his last communication to the shareholders of HDFC, Parekh thanked everyone who was part of this journey. “It is 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,” he wrote in the five-page letter. It concluded with a very strong message: “Our history cannot be erased and our legacy will be taken forward.”
Taking pride in the fact that one of the most complex transactions and the world’s largest merger in recent times moved as per timelines, Parekh highlighted how transparency was maintained throughout the merger process.
Accepting that hurdles were encountered which is “par for the course in such transactions”, Parekh extended his thanks to every professional support he received in the journey. “Whenever and wherever we reached out for guidance, doors opened and help was at hand instantly.” He took pleasure in stating that the corporation has worked with possibly, the country’s best legal teams, chartered accountants, valuers, bankers, advisors and other specialised professionals.
Seamless transition
An integration committee has been set up and in the next 10 months it would ensure a seamless transition. “Cross functional teams are hard at work to ensure that the execution plan and strategic objectives are upheld in the merged entity,” Parekh added.
Parekh never took the ‘promoter’s’ seat, though the corporation was founded by his uncle HT Parekh. Instead, he found joy and satisfaction in calling himself an employee and hence, had a message for them as well. “Know that you will always carry the indelible mark of ‘HDFC’ with you. This is your era of new possibilities.”
Parekh is confident that HDFC will always have the distinction of being the institution that introduced retail housing finance to the country. “No institution in India has the richness of 46 years of understanding the needs of a home loan customer.” With HDFC Bank’s vast distribution network, he affirms that it will be better harnessed for both home loans and the group companies.
But there is a note of caution. “The biggest risk organisations face today is staying with the status quo, believing what worked well yesterday will continue in the future.” He is equally mindful that with change, comes the power of adaptability, growth and new aspirations. “The orchestration of this merger is to ensure that the future is not constrained for any of our stakeholders.”
The bar is thus, set high for HDFC Bank. Parekh believes “... the leadership team will forge an era of new opportunities for the combined entity.” The bank is set to assume its mega-size starting Saturday stepping into the shoes of HDFC doyens who’ve held fort for over 30 years. Can it satisfy all stakeholders?