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

HDFC Bank was in news recently for taking over its parent, housing finance major HDFC. After the reverse mega merger, the country's first home finance company ceased to exist, but it created a lender that ranks fourth in equity market capitalisation. The merger came into effect on July 1, but a day before that, its chairman Deepak Parekh resigned and his last emotional letter to employees started trending. In the letter, Mr Parekh said it was "time to hang my boots".

Now, an offer letter has surfaced online that users claim is what Mr Parekh received when he joined HDFC Bank. Dated July 19, 1978, the letter shows Mr Parekh was given the post of Deputy General Manager.

NDTV cannot verify the authenticity of the letter.

Deepak Parekh hangs up his boots after a 45-year career at #HDFC

👇 His appointment letter dated July 19, 1978. He joined as Deputy General Manager of HDFC for a basic salary of Rs 3,500

Truly the end of an era!#HDFCMerger pic.twitter.com/9Z7qedifTK

— Shilpa S. Ranipeta (@Shilparanipeta) June 30, 2023

As per the letter, Mr Parekh's basic salary was Rs 3,500 along with Rs 500 as dearness allowance.

He was also entitled to 15 per cent housing rent allowance (HRA) and a city compensatory allowance of 10 per cent.

Moreover, Mr Parekh was also entitled to corporation's Provident Fund, gratuity, medical benefits and leave travel facilities. As per the letter, HDFC was ready to reimburse the expenses of his residential telephone.

Termed as the biggest transaction in India's corporate history, HDFC Bank had, on April 4 last year, agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion, creating a financial services titan.

The proposed entity will have a combined asset base of around Rs 18 lakh crore.

Now that the deal is effective, HDFC Bank is 100 per cent owned by public shareholders, and existing shareholders of HDFC own 41 per cent of the bank.