NEW DELHI: HDFC chairman Deepak Parekh on Friday exuded confidence that the synergies between HDFC Bank and the group companies will deepen with the bank taking on the mantle of ownership of the group following the reverse merger likely to be effective from Saturday.
As chairman of HDFC Ltd, Parekh in his last message to the shareholders said home loans will now be complemented by HDFC Bank’s core strengths - its sales engine, execution capabilities at scale, and deep insights on consumer behaviour.
The reverse merger of parent HDFC Ltd with HDFC Bank is expected to be effective from July 1.
“For HDFC Bank, a home loan customermarks 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.
HDFC Bank’s vast distribution network will be better harnessed for both home loans and the group companies, he said. “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,” Parekh said.
What the future holds, only time will tell, he said, adding, the biggest risk organisations face today is staying with the status quo, believing what worked well yesterday will continue in the future. Change takes courage as it displaces one from the cocoon of comfort and familiarity, he said.
Parekh said it is time for him to hang his boots and expressed hope for an exciting future and prosperity. “It is my time to hang my boots with both anticipations and hopes 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 said.
The approvals by the Competition Commission of India, the National Company Law Tribunal, the shareholders, and the regulators were important merger milestones.