Deepak Parekh to step down as HDFC chief this month

Deepak Parekh to step down as HDFC chief this month
The Economic Times, December 05, 2009, Page 4

Our Bureau MUMBAI

DEEPAK Parekh, whose name has been synonymous with India’s largest mortgage company, HDFC, will cease to be the chief executive of the corporation from December-end. The company on Friday formally announced the succession of Keki Mistry, vicechairman and MD, as chief executive and joint MD Renu Sud Karnad as managing director for a five-year period from January 1, 2010.

Although Mr Parekh would continue to be chairman, he has indicated that he would be spending lesser time in office in the day-to-day running of the company. “Mr Deepak Parekh, chairman & CEO of HDFC, after 31 years of which 16 years were as chairman, has decided to step down from his executive position. He will continue as the non-executive chairman of HDFC, which is the holding company for its group ventures,” a statement issued by the corporation said. The group ventures include HDFC Bank, HDFC Standard Life, HDFC Ergo General Insurance and HDFC Mutual Fund.

The corporation’s board has also approved the elevation of V Srinivasa Rangan, senior GM & chief treasurer, to the rank of the executive director of the corporation for five years.

Mr Mistry joined the corporation in 1981, has served on the company’s board for 16 years. He has worked in various positions and now would be responsible for the overall functioning of the corporation. Ms Karnad had joined the corporation in 1978, and has been on the board for nine years. She will continue to be responsible for the operations, human resources and communications functions of the corporation.

Mr Parekh’s stepping down will be an inflection point for HDFC as he is credited with building the institution which today enjoys a market capitalisation of Rs 77,000 crore. Besides heading the home finance company, Mr Parekh spearheaded the group’s ventures which have gained from his personal equations with industry, policymakers and investors. One reason for HDFC’s impeccable asset quality, despite the stress in real estate, according to insiders, is Mr Parekh’s deep understanding of the construction industry. It is also because of Mr Parekh’s stature in the international market that big names globally have been willing to pay top dollar to partner with HDFC for a variety of businesses, say insiders. Indeed with close to threefourths of its shares held by foreigners, the comfort level of the international investors is significant for HDFC.