Synopsis: In a rare revelation, former HDFC Chairman Deepak Parekh disclosed that ex-ICICI Bank CEO Chanda Kochhar once informally proposed a merger between ICICI and HDFC years before the 2023 HDFC-HDFC Bank merger. Parekh rejected the idea, calling it "improper" due to HDFC's distinct brand identity and structure.
Deepak Parekh Drops Bombshell: Chanda Kochhar Once Proposed HDFC-ICICI Merger Before 2023 Deal
In a candid and previously untold anecdote, Deepak Parekh, the former Chairman of HDFC, has revealed that Chanda Kochhar, ex-MD and CEO of ICICI Bank, once pitched a HDFC-ICICI merger long before the 2023 consolidation of HDFC with its banking arm.
Speaking directly to Kochhar during a public discussion, Parekh said, “You said that ICICI started HDFC. ‘Why don’t you come back home?’ That was your offer.” However, he said he found the proposal “unfair and improper,” citing the brand legacy and independent structure of HDFC.
The merger that eventually took place in July 2023 between HDFC Ltd and HDFC Bank was not a product of ambition, Parekh insisted, but rather a regulatory nudge from the Reserve Bank of India. As HDFC crossed the ?5 lakh crore asset threshold, it was reclassified as a systemically important NBFC, prompting the move.
Despite being a monumental shift, the merger was executed under extreme confidentiality. Parekh recalled that even senior stakeholders and the government only learned of it once the RBI disclosed details to them. Only key legal and financial teams were looped in.
Parekh described the day of the merger closure as “a sad day and a happy day.” While it ended HDFC’s run as a standalone giant, it was also a strategic step to create a global-scale Indian bank, necessary for staying competitive with counterparts like China’s mega-banks.
In his broader industry views, Parekh took a swipe at the insurance sector, calling it “least understood” and warned about mis-selling of policies by banks, often driven by high commissions. He also flagged concerns over global trade volatility, supply chain disruptions, and the need for Indian banks to pursue acquisitions to grow globally.
Disclaimer: This article is for informational purposes only. The views expressed are based on public statements and do not constitute investment or business advice. Please consult a financial advisor for any investment-related decisions.
