HDFC Bank Ltd, the first private sector lender to get approval from the Reserve Bank of India, celebrated the disbursal of its first loan of ₹40,000 in a unique way. The bank added the photo of the borrower to its first balance sheet.

Speaking about the journey of the HDFC Bank, Veteran banker and former chairman of HDFC Ltd, Deepak Parekh, revealed this special moment on a podcast hosted by ex-ICICI Bank CEO Chanda Kochhar. When Kochhar asked about unexpected moments that can change one's path, Parekh responded by recalling the first loan disbursed by HDFC— ₹40,000 to a borrower from Thane.

He added that they featured the borrower’s photograph on HDFC's first balance sheet, which set the foundation for the financial service provider’s journey to becoming a billion-dollar conglomerate.

He was speaking during an interaction with Kochhar’s podcast on YouTube titled 'Deepak Parekh on Finance, Banking & Building India | Journey Unscripted with Chanda Kochhar'.

“I remember the first loan we dispersed at HDFC. And we put that man's photograph on the first balance sheet of HDFC. Okay. We were so thrilled. It was a ₹40,000 loan in Thane. And to see the company grow to billions of dollars….and to see the subsidiaries grow, the associates grow, it's very satisfying,” he said.

Parekh shared his leadership style, likening it to that of MS Dhoni, emphasising teamwork and understanding one's team. When Kochhar asked, “Tell me if you were to compare your leadership style, you know, in the cricketing world. Would you call yourself a cool-headed captain like Dhoni or a risk-taking all-rounder like Hardik Pandya or somebody else?”

To which, he said, “More like Dhoni, because of teamwork. And get to know your staff, spend time with them, be with them. And, sometimes, be with their family, the senior people. And that is what management is. Carrying the large team together. And carrying people together, you have to be polite, you have to be humble, there should be no hubris, these are qualities which Dhoni has.”

Parekh emphasised the importance of taking ownership and responsibility in one's role, regardless of the stake one holds, and behaving as if managing one's own company. “So, you have to behave as if it's your company, although you may not have 0.1%. But you have to behave, act, and perform as if you're owning it. Whether it's cost or recruitment or growth or risk, or anything. That ownership is yours. You have to take that responsibility,” he added.

Deepak Parekh shared his preferences and insights in a fun segment of the podcast. When asked about his interests, he chose cricket as his favourite. During long meetings, he prefers hot coffee. His go-to comfort food after a long day is home-cooked Gujarati vegetarian food, which he finds simple yet satisfying.

When it comes to music, Parekh’s favourite is ‘Mera Joota Hai Japani,’ from the 1955 Bollywood film Shree 420.

The seasoned banker further clarified that he doesn't watch current movies; instead, he remembers old songs from his youth.

In terms of his work style, Parekh admitted to being a night owl, often sleeping late. He doesn't read books for leisure but finds value in reading annual reports, particularly those of Warren Buffett, which offer valuable management lessons.

On his phone, the app he uses the most is the cricket score app. He also enjoys Sudoku and often challenges himself to beat his previous scores, usually scoring 98% or 99%.

When asked about the best advice he received so far in life, Parekh emphasised the importance of being humble and kind.

Finally, when asked to pick a cricketer for a corporate turnaround, he chose Virat Kohli without hesitation. He praised Kohli for his strategic thinking and passion, qualities he believes are essential for leading a successful turnaround.

Parekh said that the Reserve Bank of India (RBI) supported the HDFC and HDFC Bank merger, but without any regulatory relaxations. “The central bank didn’t offer any regulatory relaxations, but they helped us in the sense that navigating and going through the process,” he said.

HDFC Ltd and HDFC Bank completed the merger on July 1, 2023.

“ICICI started HDFC. Why don’t you come back home? That was your offer before we merged with the bank. They classified NBFCs into ‘large.’ Now, ‘large’ was ₹50,000 crore and above, we were already ₹5 lakh crore,” he added.

Parekh advised individuals to maintain a loan-to-income ratio of 25% and prioritise savings, insurance, and diversified investments. He emphasised the importance of patience in equity investments and long-term financial planning.

“I think for whatever purpose they need the money, they should ensure that only 25% of their income is used to repay a loan. Only 25%, because you need the balance for your family, for your upkeep, for maintenance, for taxes. So, 25% is the maximum you can pay,” he said.

Parekh said that the RBI should lower the Statutory Liquidity Ratio (SLR) to free up capital for banks to lend to help boost the economy.

“Banks have to lend for the economy to grow and to build the economy. I think it's the right time now for the RBI to gradually bring down the SLR also and give more money to the banks because overnight deposits are not going to increase,” he added.

When Kochhar asked if he remembered any standout interactions with RBI Governors, the veteran banker recalled his relationship with Bimal Jalan, describing him as "an ICICI person and a friend." The former RBI Governor frequently encouraged him to enter the public sector, saying, “Come, join the public sector as a CEO,” and even offered him leadership positions in vacant banks. Jalan even advised him to join the RBI itself.

“But I’ve never said this to anyone,” he said. “We were growing. I was enjoying myself. We had phases where we started new ventures, such as life, asset management, non-life and private equity. So many things were happening simultaneously, I was quite happy and content.”