In a surprising revelation, veteran banker Deepak Parekh, former chairman of HDFC Ltd, disclosed that Chanda Kochhar, ex-CEO of ICICI Bank, had once proposed a merger between ICICI Bank and HDFC. This proposal, shared during a candid chat on Kochhar’s YouTube channel, had never been made public before.
Parekh recalled, “You said ICICI started HDFC. ‘Why don’t you come back home?’ That was your offer.” At the time, Kochhar was referring to ICICI’s early financial support in setting up HDFC Ltd. However, Parekh declined the proposal, saying, “It wouldn’t be fair or proper, with our name and identity.”
He also spoke about the historic HDFC-HDFC Bank merger that was finally completed in July 2023, calling it a move largely prompted by regulatory pressure. “RBI supported us and pushed us to some extent. They helped us through the process,” Parekh said, adding that no special concessions or relaxations were given during the merger.
According to Parekh, the merger was kept highly confidential, with only lawyers, accountants, and RBI officials being aware. “When the news broke in the morning press, that’s when everyone else knew,” he said. Even the government was only looped in through RBI.
Describing the moment the merger was finalised, Parekh said it was both a “sad day and a happy day.” He stressed that the union would ultimately strengthen India’s financial ecosystem. “It’s good for the institution, and good for the country to have large banks,” he noted.
Parekh concluded that Indian banks need to grow through acquisitions to remain competitive and resilient in the global financial landscape—hinting that such mega-mergers may become more common in the future.
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