HDFC chairman Deepak Parekh said on Tuesday that the home loan company is considering investing up to Rs 100 crore every year in technology startups. He said that HDFC will create a separate team that understands the startup environment for investing.
This announcement was made at a time when many companies and the country’s largest bank SBI has created a fund internally for investing in startups.
Deepak Parekh told Plan
Deepak Parekh said at the annual conference Tikon, ‘In the last meeting of the board of directors, I had the idea of investing Rs 100 crore every year in the startup. The HDFC chairman said that the board of directors was not initially keen on investing in startups, just like starting a full-fledged bank. But they believe that there is a need to invest in future ideas in the technology sector.
The company is building a team at the headquarters to handle the investment. He expressed confidence that it will start functioning in two months. Parekh asked the youth not to be affected by the current economic softening and expressed confidence that this crisis will end soon. He told the young entrepreneurs, ‘There is no need to be disappointed with the current difficulties. The crisis will end. He said that India is the important engine of the world.
Mantra to become Successful
Recalling the old days when he started HDFC, Parekh said that he insisted before the board of directors to step into the mainstream bank, as HDFC needed to diversify away from home loans. Parekh said that honesty, truth and accountability are the key elements that make an institution successful.
He also said that there is never any delay in starting anything. HDFC was also started by HT Parekh when he was 65 years old. Parekh said that there were many problems in starting the new institute. This includes problems with initial public issue, raising debt from L.I.
The secret of HDFC Success
He said that despite the challenges, HDFC adopted a unique model for the business. He recalled the old saying that Infosys co-founder NR Narayanamurthy took a loan of Rs 70,000 from his company for the first house in the financial capital and he was given this loan only on the basis of appointment letter.