'Rs 3,500 basic salary': Former HDFC Chairman Deepak Parekh's offer letter from 1978 goes viral after his retirement

Former HDFC chairman Deepak Parekh announced his retirement and shared a rather emotional note on June 30, ahead of the mega merger with HDFC Bank. Parekh announced his decision saying it is time for him to “hang up 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," he said.

Soon after that, a post claiming to show his offer letter from 1978, when he had joined the organisation, surfaced online. The letter dated July 19, 1978, was for Parekh. It showed that he was offered the position of Deputy General Manager at HDFC.

As per the components of the offer letter, Parekh’s basic salary was Rs 3,500 plus Rs 500 as a fixed Dearness Allowance. He was also entitled to 15 per cent Housing Rent Allowance and a City Compensatory Allowance at 10 per cent.

Furthermore, Parekh was also entitled to Corporation’s Provident Fund, gratuity, medical benefits and leave travel facilities as per rules framed. HDFC also said that it will reimburse the expense of his residential telephone.

78-year-old Parekh, in his letter to shareholders post-retirement last month said, that the organisation has been unwavering in its commitment to being transparent throughout the merger process.

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"Being one of the world’s largest merger announcements in recent times, each milestone has been closely followed by all stakeholders. We have been unwavering in our commitment to being transparent throughout this process and have engaged deeply with our stakeholders to keep them abreast of the progress of the merger," he said.

He further stated, "To all our employees transitioning to HDFC Bank, know that you will always carry the indelible mark of ‘HDFC’ with you. This is your era of new possibilities. Embrace change, continue to work as close-knit teams, be kind and have each other’s back. The future is yours to grasp."

It may be noted that Wednesday (July 12) was the last day of trading for Housing Development Finance Corporation (HDFC) shares on stock exchanges.

July 13 is the record date for the merger, meaning those investors who would be holding HDFC shares on the day would be eligible for the allotment of HDFC Bank shares. Existing shareholders of HDFC will own 41 per cent of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.  

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