Stepping down as HDFC chairman was career's most difficult decision, says Deepak Parekh

For a man who quit his stable job at Chase Bank to join his uncle’s housing loan startup, HDFC, in 1978, one would think the most difficult phase of his career would have been this transition. But not so.

Parekh, the now non-executive chairman of the private bank, says that the bitterest pill to swallow was his stepping down as the head of HDFC at 65 to give fresh talent a chance to grow.

"The most difficult decision I had to take was when I was 65 years old," Parekh said in response to a question at the Global Fintech Fest 2023. "I was the executive chairman, and I thought that my board wanted me to continue. I thought if I continued, it would come in the way of the next lot of people."

In a world often influenced by external pressures, Parekh's decision to step down was entirely self-initiated. "There was no RBI directive, no regulatory reason, no pressure from the board," he noted, adding that there was no pressure either for him to continue. "But I thought, 'No, at 65, you have to step down and become non-executive.'"

Where seasoned leaders often find it challenging to relinquish their positions, Parekh's internal struggle highlights the delicate balance between personal aspirations and the greater good of an organisation. Parekh added, "So I decided, after a lot of (introspection), and much against my family's wishes, that it was not fair for me to continue. And I retired in my 65th year and became the non-executive chairman of HDFC."

Parekh's humility and dedication to the institution he had nurtured for decades shone through as he revealed that, for the last 13 years, he had not received any salary. "As a non-executive chairman, you are not entitled to any stock options," he explained. "So my colleagues who have been working with me for 20-30 years had more options than I did."

This revelation underscores Parekh's commitment to the principle of equitable leadership succession. He said, "It was a difficult decision. It was a fair decision because you had to let others come up in life. And I took the call, and I don't regret it at all. I was available to them then. I'm still there. And I think it was necessary."