HDFC Bank Gets a New CEO: The Story of the Man Who Founded HDFC at 66
Anup Bagchi will take over as HDFC Bank CEO. But who actually started HDFC? Meet H.T. Parekh, who brought home loans to India at an age when most people retire.
Why HDFC is in the news
HDFC Bank has a new boss. The RBI has approved Anup Bagchi, currently CEO of ICICI Prudential Life Insurance, as the next MD and CEO of HDFC Bank. He takes charge on October 27, 2026, replacing Sashidhar Jagdishan.
The news comes at a tough moment. HDFC Bank's shares have struggled over the past year, and the market reacted with swings on the day of the announcement, rising at first and then falling.
But here's the interesting part. Bagchi is coming from the ICICI group. Almost 50 years ago, the man who founded HDFC also came from ICICI. To understand where HDFC Bank is going, you have to know where it started.
A country where nobody got a home loan
Imagine India in the 1970s. You have a steady job, a family, and a dream of owning a house. But no bank will lend you money to buy one.
That was normal back then. Middle-class families saved for decades, borrowed from relatives, or sold gold. Most people got their own house close to retirement. Banks lent to businesses, not to salaried people wanting a home.
One man thought this was wrong. His name was Hasmukhbhai Parekh.
The man who refused to retire
H.T. Parekh was born in 1911 in Surat. He studied at the London School of Economics, worked in stockbroking in Bombay, and later joined ICICI, where he rose to become chairman.
At an age when most people want rest, he wanted to build something new. In 1977, at 66, he founded the Housing Development Finance Corporation, HDFC. Its only job: give home loans to ordinary Indians.
Why people thought it would fail
Almost everyone had doubts. Indians were seen as people who avoid debt. Many believed families would never take a 15-year loan for a house. Others worried that if people stopped paying, taking back a house through India's slow courts would be nearly impossible.
So Parekh had to prove a whole new kind of business could work. He brought in serious backers, including ICICI, the World Bank's IFC, and the Aga Khan, which gave the young company credibility from day one.
The real secret: trust and discipline
HDFC didn't win by being flashy. It won by being careful. It checked every borrower properly, stayed close to customers, and followed up on payments seriously.
Over time, the doubters were proven wrong. Middle-class Indians did repay their home loans, and on time. For a family, the house was the last thing they would ever default on. Housing loans went from "too risky" to one of the safest kinds of lending in the country.
From HDFC to HDFC Bank
In 1978, Parekh brought in his nephew, Deepak Parekh, who left Chase Manhattan Bank to join a tiny, unproven company. Deepak later became chairman and led HDFC for decades.
When India opened its economy in the early 1990s and allowed private banks, HDFC set up HDFC Bank in 1994. Aditya Puri ran it until 2020 and built it into one of India's biggest banks. Sashidhar Jagdishan took over after him, and now Anup Bagchi is next.
H.T. Parekh died in 1994, the same year HDFC Bank was born. He never saw how big his idea became.
The full circle
In July 2023, the original company, HDFC Ltd, merged into HDFC Bank. The child had become bigger than the parent.
Now a new CEO from ICICI steps in, just like the founder once did. His job is to fix what the market is worried about. But the real test is the same one H.T. Parekh passed in 1977: can people trust you with their money, year after year?
What founders can learn
It's never too late. Parekh started at 66, and his experience was his advantage.
The biggest opportunities hide inside problems everyone accepts as normal. Every family knew buying a house was hard. Nobody thought it could be fixed.
And trust compounds. HDFC didn't grow because of marketing. It grew because it kept doing exactly what it promised.
Quick answers
Who founded HDFC?
Hasmukhbhai (H.T.) Parekh founded HDFC in 1977. HDFC Bank was set up by HDFC in 1994.
What is the full form of HDFC?
Housing Development Finance Corporation.
Who is the new CEO of HDFC Bank?
Anup Bagchi, who takes over on October 27, 2026, after Sashidhar Jagdishan.
Who owns HDFC Bank?
After the 2023 merger, HDFC Bank has no single promoter. It is owned by public shareholders, including large institutional investors.
Who is Deepak Parekh?
H.T. Parekh's nephew, who joined HDFC in 1978 and led it as chairman for decades.