As per the offer letter, Deepak Parekh would receive a base salary of Rs 3,500 and a dearness allowance of Rs 500 in 1978.
The chairman of any company draws a huge amount of money as their salary but you will be surprised to know that Deepak Parekh, former chairman of HDFC, had Rs 3,500 as his salary when he joined the bank 45 years ago. After the HDFC Bank and Housing Development Finance Corporation (HDFC Ltd) merger, HDFC Bank has become the largest bank in the country in terms of market capitalisation. Deepak Parekh resigned before the merger, following which his HDFC offer letter went viral.
On social media, there are claims that Deepak Parekh, the previous chairman of HDFC, received this offer letter when he joined. Its accuracy, however, could not be verified. The job offer letter gained traction on Twitter and it only describes the pay scale and conditions of his employment contract as of July 19, 1978. See the offer letter here:
As per the offer letter, Deepak Parekh would receive a base salary of Rs 3,500 and a dearness allowance of Rs 500. This letter, written 45 years ago, included a 15% House Rent Allowance (HRA). The contract also mentions that in addition to the remuneration mentioned, he would be provided with the company’s provident fund, gratuity, medical perks, leave travel privileges and reimbursement for home phone bills.
After his resignation, Parekh told shareholders, “It’s my time to hang my boots with both anticipation and hope for the future. while this will be my last communication to the shareholders of HDFC, rest assured we now stride tall into a very exciting future of growth and prosperity.”
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HDFC Bank’s market value 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. In addition to this, it has risen to the position of fourth-most valuable bank globally in terms of market worth.
