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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The mortgage lender’s books are not in the pink of health. A merger offers its chairman a shot at glory.
Editor's note: No one turns down Deepak Parekh, the non-executive chairman of Housing Development Finance Corp. Ltd, India’s biggest home loan lender. After all, he is among the most respected executives in the corporate world, credited with having laid the foundation of the mortgage loan business in the country and on the boards of several companies. Yet, it turns out that in 2017, when Parekh broached the subject of a merger between HDFC with its more valuable listed subsidiary HDFC Bank, to create India’s most valuable financial entity, it was shot down quietly. In banking circles, the reasons for this were ascribed to an ego clash between Parekh and Aditya Puri, then CEO of HDFC Bank. HDFC's top management was senior in age, whereas the bank had younger management. But, Puri felt that since the bank had surpassed its parent in financial metrics, its executives should call the shots in the merged entity. Parekh, on his part, was said to be uncomfortable with his team playing second fiddle. It now transpires that there were deeper reasons for the merger not going through. …
The mortgage lender’s books are not in the pink of health. A merger offers its chairman a shot at glory.
Editor's note: No one turns down Deepak Parekh, the non-executive chairman of Housing Development Finance Corp. Ltd, India’s biggest home loan lender. After all, he is among the most respected executives in the corporate world, credited with having laid the foundation of the mortgage loan business in the country and on the boards of several companies. Yet, it turns out that in 2017, when Parekh broached the subject of a merger between HDFC with its more valuable listed subsidiary HDFC Bank, to create India’s most valuable financial entity, it was shot down quietly. In banking circles, the reasons for this were ascribed to an ego clash between Parekh and Aditya Puri, then CEO of HDFC Bank. HDFC's top management was senior in age, whereas the bank had younger management. But, Puri felt that since the bank had surpassed its parent in financial metrics, its executives should call the shots in the merged entity. Parekh, on his part, was said to be uncomfortable with his team playing second fiddle. It now transpires that there were deeper reasons for the merger not going through. …
Aggressive expansion, continued dependence on its parent for business, and an adverse shift in the product mix weigh on profitability as well as investor sentiment.
The beleaguered lender outperformed larger rivals—and itself—on several metrics in FY26, but one-offs and a still weak retail engine keep its investors on edge.
Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
Aggressive expansion, continued dependence on its parent for business, and an adverse shift in the product mix weigh on profitability as well as investor sentiment.
The beleaguered lender outperformed larger rivals—and itself—on several metrics in FY26, but one-offs and a still weak retail engine keep its investors on edge.
Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
