Deepak Parekh with Chanda Kochhar

 

In this episode, Chanda Kochhar converses with one of India’s most respected business minds — Deepak Parekh.

For over 45 years, he’s led from the front and played a defining role in shaping India’s financial services ecosystem. He’s not just built companies — he’s built institutions that people trust.

Awarded the Padma Bhushan in 2006, his story isn’t just about business. It’s about vision, values, and the kind of leadership that leaves a legacy.

Chanda Kochhar and Deepak Parekh speak about everything — what guided his decisions, the quiet conviction behind his leadership, and what leads to true nation-building.

This one’s not just an episode. It’s a rare masterclass in humility, leadership, and purpose-driven growth.

https://www.youtube.com/watch?v=Zbv9WesSVAo

Episode begins with Sharing Common Love for Sudoku and how it keeps us active. 

Decoding a VUCA World: FTA and incredible and good model with UK, which helps trade and gives visa for trade. 

VUCA stands for Volatility, Uncertainty, Complexity, and Ambiguity. It's a framework used to describe the challenging and unpredictable nature of the modern world, particularly in business and leadership.

We have to improve productive, reduce logistic cost, reduce cost of Production. 

Path to the $5 Trillion Economy: Domestic Consumption is the major contributor of our GDP

India is growing twice the global growth. We are in a good shape with poor neighbourhood. 

US only has interests, no good friends or enemies. 

 Small Investors & Equity Market: Approach should be patients. Long time. Stock market is the devise to move the money from the impatient to patient. 

Banks - The Building Block of An Economy: Banks are like heart. They are not lending enough to corporates. Long term project finance is difficult. Only State Bank is willing. Now they are shying away. Retail deposit is less, consumption is high. Bank's deposit is not growing then how can they lend?  CRR  down, and open market policy helped. Bank has to lend for GDP to grow. LSR should also be brought down. Increase liquidity. Private sector is not expanding. Brown field Vs. Green field. 

Need to Reignite Private Sector Investments

The RRR of Current Investments Roads, Renewables, Refinery and Retail is where loans are going. 

Youth, Money & Mindset : Credit card, Car, Home loan - as soon as a person get job. How should they look at financial planning? 

Only 25% of your income should be used to repay a loan. It's the maximum. It will bring self discipline. 

Retail Lending: An Emerging Risk?:Retail demand is there, but banks need money to do that. Two areas to worry. Micro finance, arrears have gone up and number is staggering. NPA increasing. 

We worry with small falls and there is knee jack reactions. We need to have the focused approach, like how Yes Bank as handled. 

Importance of Diversifying your Savings. 

We have grown up taking life insurance. Today insurance companies are finding hard to sell. Young should have insurance. Accident and over exercising, young even at 30 are dying. Earlier it was tax and saving. But after tax benefit is removed, people are not interested. 

As entry level is less, Mutual fund with SSI has people's attraction. 

Participate in Equity, but patience pay. Buy a property, take a loan, and buy another property. 

Young mind set is get rich quick. 

The Future of Banking : Banks have to optimise their cost. the CASA  Current account/Saving account ratio is changing and coming down. People think why keep money in current account. 

Non availability of long term finance is a big concern. Manage inflation and interest rate. 

If we bring down interest rate, people will buy home, it will bring affordable. Every one take advantage of federal reserve. 

Inflation if food/agriculture related. Logistics is a big problem. From the farm to the plate there is a big loss. Neither the consumer is benefited nor the farmer. 

Agriculture bill was in favour of the farmer and they did not understand. 

Middleman has to be reduced and wastage have to come down. 

Housing in rural area is the 5th priority. First is where to keep produce. Logistics. GST has helped considerably as there are no trucks waiting at the borders. 

Bimal Jalal called him to join may public sector banks, but he was never interested. Was happy and content with HDFC.

The HDFC Calling quitting Chase Manhattan Bank, H.D. Parekh persuaded, when H.D.P was in ICICI. Started in Raymond House, in one room. Floor by Floor they brought. 

The Origin of HDFC Bank: Reserve Bank gave a small ad. saying invitation invited for private set up. They were given the first approval. Around the same time, ICICI. They said, ICICI started HDFC, why don't you come back home? They asked. 

The Big HDFC Merger, no concession, no relief, but helped to go through the process, get approval, it was exciting and kept a secret, every one found only when it was in press, it was a sad and a happy day, it's good for institution and country. We need larger banks, who can take larger risk. 

Fuelling Housing Growth developer loan was small porting. Only 15% to 20% was developer loan, because they wanted houses to be build. Only then people would build houses. Banks are not allowed to fund land. That fallacy should go. HDFC Capital, 10% Abudabi - Funding only buying land. Niche and doing well. 

Making Affordable Housing A Reality. Increase supply. Enough demand. There is more cost to build a small own. Cost of construction is high. Most developers are not interested in that. Shipping development investment corporation, there was a necessity that if your buy foreign ship you have to buy Indian, similarly, if a builder build huge building, they should build smaller ones too. 

00:42:59 Opportunities and Challenges of Insurance Sector. Mis selling has spoilt. Selling for commission. 75 year old being sold 30 years policy. Some incentive must be there, or all will put in capital market. Even Unit linked Mutual fund has come down. 

25% in govt. Security, then state security, then infrastructure...available to invest in equity and private debt is less. 

Non-Negotiables for Growth Of India are ease of doing business including land, availability of fund and finance, and some incentive like capital allowance, accelerated depreciation.  Increase liquidity. We have political, economic, stability. Huge consumer demand. 

The Man Beyond the Numbers. Not earlier, Maturity comes over age. Had to travel a lot. Did not have much time for family. Now have time to spend with family, but they don't have time for us. Have 5 lovely grand daughter 6 to 16. Grandparents have to cherish each of those moments. 

00:51:14 Risk Assessment - Build nurtured and never faltered. Have gone wrong in few cases, where I thought I never would go wrong, but have made money where you thought it wont, but basically it's all gut. Inspite of any 50 page documents. Gage, intention of the person. 

Cricket & Leadership: Shared Values - Carrying people together, humble. 

The Unscripted Moment of Life - 40k loan first, in Thane, his photo was put in the Annual report. Behave, act, perform as it is your company. Take that ownership and responsibility. Owner's should behave like professionals and professionals like owners.           

Impromptu Answers Cricket, Coffee, Homely food, Gujrati, simple vegetarian food. Song - Mera Jootha hey Japani, Sleeping late. I don't read book's but Annual reports. App mostly used Cricket score and Sudoko. Be Humble and Kind. Kohli - Strategic thinker, passion, commitment. 

Leadership is not about noise. But about courage, vision backed with execution.