Veteran banker and former HDFC Ltd chairman Deepak Parekh has made a rare disclosure, revealing that ex-ICICI Bank CEO Chanda Kochhar once proposed a merger between ICICI and HDFC—years before the historic HDFC-HDFC Bank merger of 2023.
Speaking on Kochhar’s YouTube podcast, Parekh recalled the confidential conversation: “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. You said that ICICI started HDFC. ‘Why don’t you come back home?’ That was your offer.” Parekh explained that he turned down the proposal at the time, believing it wouldn’t be fair or proper for the HDFC brand and its banking operations.
The eventual merger of HDFC Ltd with HDFC Bank, completed in July 2023, was not born out of corporate ambition but was largely driven by regulatory pressure. The Reserve Bank of India (RBI) had classified large NBFCs like HDFC—whose assets exceeded ₹5 trillion—as systemically important, pushing for tighter integration into the banking system.
Parekh also revealed that the merger process was kept strictly confidential. “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.
Reflecting on the day the merger was finalized, Parekh described it as “both a sad and a happy day.” He emphasized that the consolidation was good for the institution and the country, enabling Indian banks to compete globally. Parekh concluded by stressing that Indian banks must continue to grow through acquisitions to become stronger and more competitive in the future.