HDFC's Parekh expects regulatory response to merger to be fair, judicious

 Says India can double home loans in 5 years to $600 billion

Deepak Parekh, chairman of HDFC Ltd, the largest mortgage financier of the country said he expects the regulator’s view on the proposed merger with HDFC Bank to be fair and judicious while asking the stakeholders to be patient. In his address to the shareholders in the annual report, the HDFC patriarch said after 45 glorious years of providing homes to millions of customers, the time is right for HDFC to find a new home.

In April, the HDFC and HDFC Bank announced a plan for an all-stock deal merger, for which all the regulatory approvals are expected in 15-18 months. HDFC Bank has requested the Reserve Bank of India for more time to meet several regulatory requirements like cash reserve ratio, statutory liquidity ratio and priority sector lending targets.

“At this juncture, we are awaiting regulatory guidance on the path forward. We remain respectful of all our regulators and are confident that the outcome will be judicious and fair at a systemic level,” Parekh said in the note to the shareholders of HDFC. “My only ask of our stakeholders is for your patience as we navigate through the complexities of this transaction. More than ever before, we need your trust and support,” he said….Read More

HDFC-HDFC Bank mega merger: 45 years on, the homemakers check in

 Fifty-five years ago, Hasmukh Thakordas Parekh set up HDFC Ltd, which went on to become a marquee name in India Inc

“After 45 years of housing finance and nine million homes provided to Indians, we had to find a home for ourselves. We have found it within our own family and in our own bank,” said Deepak Parekh, chairman-HDFC Ltd while announcing the long speculated merger with its offspring, the 28-year-old HDFC Bank.

The “we” that Parekh referred to is a many-million-strong family, and includes the housing finance company’s employees, shareholders, and customers. It’s said that anything more than two is a crowd, but a lack of togetherness will not be an issue, Parekh made that clear upfront: “This is a merger of equals.”

It must truly have been an emotional moment for Parekh. Fifty-five years ago, Hasmukh Thakordas Parekh set up HDFC Ltd, which went on to become a marquee name in India Inc. His nephew — the Parekh of our times — had the foresight to set up HDFC Bank when the first set of private bank licences were issued in the early 1990s.