ICICI HDFC Merger Talks Parekh Kochhar: Veteran banker and former HDFC Ltd Chairman Deepak Parekh has made a surprising revelation—former ICICI Bank CEO Chanda Kochhar once suggested merging ICICI Bank with HDFC, long before HDFC eventually merged with HDFC Bank.
Speaking during a candid conversation on Chanda Kochhar’s YouTube channel, Parekh shared that this proposal was never made public before.
“I remember you talking to me once. You said ICICI started HDFC, and you asked, ‘Why don’t you come back home?’ That was your offer,” Parekh recalled.
For context, the original ICICI Ltd—before becoming ICICI Bank—had financially supported the creation of HDFC Ltd.
Parekh said he turned down the proposal, believing that such a move wouldn’t be appropriate for HDFC’s identity and brand.
HDFC-HDFC Bank Merger Driven by Regulatory Push
Parekh also reflected on the July 2023 merger between HDFC Ltd and HDFC Bank, calling it a result of regulatory pressure.
“RBI supported and pushed us into it, to some extent. They helped us through the process,” he said.
However, he clarified that there were no special concessions or extended timelines from the Reserve Bank of India. Despite this, RBI facilitated the merger approval.
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A Closely Guarded Secret
Parekh said the merger was kept extremely confidential.
“No one knew about it until it hit the press. The government knew because RBI was involved, but we kept it limited to lawyers, accountants, and the due diligence team,” he explained.
Describing the day the merger was finalized, he said it was both “a sad day and a happy day.” He viewed the merger as positive for the institution and the country, stating:
“India needs large banks. Banks in India must grow through mergers and acquisitions to become stronger in the future.”