Deepak Parekh has dubbed the current crisis a human economic financial (HEF) crisis, completely different from the Global Financial Crisis of 2008, and said it would take at least nine months to recover fully from it.In a webinar on Friday, the chairman of HDFC recommended that India’s financial sector should be strong or else economy will collapse, and he pushed for the NBFCs (non-banking finance companies) to be regulated.The coronavirus pandemic has rattled lives and economies across the world, and India has not been spared either. So far, India has 7,529 coronavirus cases, with a death toll of 242.“The poor should be supported more and steps to be taken for them too brought out of poverty. In any crisis the they are the first affected and last to recover. They are the backbone of the nation,” he said.He expects the government to come out with a stimulus scheme on Monday. Parekh also pushed for removal of complicated tax rules.He warned that banks would make drastic reductions in granting credit, if they see a credit risk involved.He said that in the new order post crisis, the billion dollar startup valuations would be challenged and burning cash would be frowned upon.“It will be tough time for start-ups to raise cash,” he said.He warned that leverage is double edged sword. “It can lift you or bring you down,” he asserted.Parekh expressed concern that restarting manufacturing is going be difficult, as the labour force will be forced to choose between Fear of Life or Livelihood.“To manage this, the labour has to be incentivised to return. Management has guarantee them security of life , food and stay if required. They should be your first priority,” he recommended.“Management has to become more prudent by Cutting Costs , downsizing , No increments /bonus. Getting cash flow back should be first priority,” he said.He pointed out that public and private partnership can work, as in the case of YES Bank “Even though YES Bank was a competitor we didn’t allow it fail and its repercussions would have been more damaging ,” he said adding that it was not right of state-run banks to take over the problems of a Private banks.“YES bank had foreign banks /Funds showing interest. But the government said it’s an Indian problem ,let Indian banks solve it,” he said.“We should have stepped up did the the same for PMC Bank and IL&FS. Things would have different then,” he added.He suggested that the Reserve Bank of India should come forward and purchase corporate debt papers , which is a common practice by the central banks across the world.He said that even as equity markets were badly hit, they will make a return.He expressed his concerns that there were only 2 per cent equity investors in India , compared to 40-60 per cent in some countries.“Mutual fund (MF) penetration also very low at 12 per cent compared to 62 per cent global. If MF participation is doubled , it will make huge difference in markets. First time investors should be encouraged to invest in equity through MF as it is less risky ,” he said.