Former HDFC Chairman Deepak Parekh`s 1978 Job Offer Letter Goes Viral; Do You Know What Was His Salary 45 Years Ago?

According to the offer letter, Parekh was offered a basic salary of Rs 3,500 plus Rs 500 as a fixed Dearness Allowance in 1978. Besides his salary, Deepak Parekh was also entitled to a 15 per cent Housing Rent Allowance and a 10 per cent City Compensatory Allowance.

NEW DELHI: The merger of HDFC Bank and Housing Development Finance Corporation (HDFC Ltd) merger, which came into effect from July 1, was one of the biggest developments in the banking sector in recent times. After the much-talked-about merger, the HDFC Bank has become the largest bank in the country in terms of market capitalisation. Just a day ahead of the merger, HDFC bank's former chairman Deepak Parekh resigned from his post and shared an emotional note with the bank's employees in which he said that it was "time to hang my boots".

"It is my 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. The HDFC experience is invaluable. Our history cannot be erased and our legacy will be taken forward," Parekh said in his retirement letter.

Soon after that, a post claiming to show a 45-year-old letter - when Deepak Parekh was first offered a job at the HDFC Bank in 1978 - went viral on social media. The letter, dating back to July 19, 1978, also revealed details of the salary offered to Deepak Parekh back then and other terms and conditions of the employment contract.

Please note Zee Media cannot verify the authenticity of the letter.

Back then, Parekh joined his uncle’s firm HDFC Limited as a Deputy General Manager. According to the offer letter, Parekh was offered a basic salary of Rs 3,500 plus Rs 500 as a fixed Dearness Allowance. Besides his salary, Deepak Parekh was also entitled to a 15 per cent Housing Rent Allowance and a 10 per cent City Compensatory Allowance.

As per the letter, Deepak Parekh was also offered the corporation's Provident Fund, gratuity, medical benefits, leave travel facilities, and reimbursement of residential phone expenses. After the merger, Parekh will not be serving on the bank’s board, owing to rules by the Reserve Bank of India (RBI) on age limits.

During his 45-year-old career, Parekh has been responsible for taking five companies public and stitched together at least seven M&A deals. Under Parekh, HDFC has provided more than NINE million Indians with home loans and grew its loan book to Rs 7.24 lakh crores. The mortgage lender now commands more than a third of the overall home loan market.

HDFC Bank agreed to the USD 40 billion deal on April 4 last year. The HDFC Bank is now 100 per cent owned by public shareholders, and existing shareholders of HDFC own 41 per cent of the bank. HDFC Bank’s market value has increased significantly following the merger, making it the richest bank in India. As of July 7, HDFC Bank had a market value of Rs 9,28,657.99 crore.