Deepak Parekh's BIG revelation: Chanda Kochhar had proposed ICICI Bank-HDFC merger. Here's what he replied

Veteran banker and former chairman of HDFC Ltd Deepak Parekh recently revealed that ex-ICICI Bank CEO Chanda Kochhar had once made a bold pith to him, suggesting to merge the two financial giants. This came years before HDFC was eventually merged with its banking arm.

During a candid conversation on her YouTube channel, Parekh told Chanda Kochhar that the proposed deal was never talked about in public.

“I remember you talking to me once. I remember it very clearly. It’s never been talked about in public, but I’m willing to share it now,” the veteran banker said.

“You said that ICICI started HDFC. ‘Why don’t you come back home?’ That was your offer,” he said.

Interestingly, creation of HDFC Ltd was financially supported by erstwhile ICICI Ltd, the parent entity of ICICI Bank.

However, Parekh revealed that he had declined the offer, reasoning “it won't be fair or proper with our name and the bank and all.”

HDFC-HDFC Bank merger due to regulatory pressure: Ex Chairman

Deepak Parekh further talked about the HDFC-HDFC Bank merger that was completed in July 2023. Talking to Chanda Kochhar, he said that the union was mainly driven by regulatory pressure.

“RBI supported us and they pushed us into it to some extent and they helped us,” he said.

However, he revealed that “there were no concessions, no relief, no time, nothing,” while acknowledging the RBI “helped us to go through the process and get the approval.”

Parekh said that the merger deal was kept as a secret.

“It was kept a secret. No one knew about it—when it hit the press in the morning, that’s when everyone found out. The government was aware because RBI was in touch with them, and we kept it so close—just lawyers, due diligence, accountants,” he said.

Looking back at the day when the merger was closed, Parekh described it as a “sad day and a happy day”.

The veteran banker described the merger as good for the institution, adding that it is good for the country to have large banks.

Indian banks must grow through acquisitions to become stronger in future, he added.