Veteran banker Deepak Parekh discloses that Chanda Kochhar once pitched a bold ICICI-HDFC merger, long before the eventual HDFC-HDFC Bank union
Mumbai | June 22, 2025 — In a surprising revelation, Deepak Parekh, the former chairman of HDFC Ltd, disclosed that Chanda Kochhar, the then CEO of ICICI Bank, had once proposed a merger between ICICI and HDFC—a deal that never went public and never materialized.
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During a candid exchange on Kochhar’s YouTube channel, Parekh recalled the private conversation where Kochhar suggested, “ICICI started HDFC, why don’t you come back home?”—referring to the historic financial support ICICI provided to establish HDFC in its early days.
“I remember it very clearly. It’s never been talked about in public, but I’m willing to share it now,” Parekh said, recounting the bold offer.
Parekh Declined ICICI Merger, Cites Integrity and Institutional Identity
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Though intrigued, Parekh declined the ICICI-HDFC merger proposal, citing concerns about brand independence and propriety.
“It wouldn’t be fair or proper—with our name, legacy, and the bank’s positioning,” he explained.
Kochhar’s offer, now seen as a bold strategic overture, remained a footnote in private boardroom history—until Parekh brought it into the spotlight.
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HDFC-HDFC Bank Merger Driven by Regulatory Pressure, Says Parekh
Shifting focus to the actual HDFC-HDFC Bank merger finalized in July 2023, Parekh revealed that the merger was primarily driven by regulatory changes and pressure from the Reserve Bank of India (RBI).
“The RBI supported us… they pushed us into it to some extent. But there were no concessions, no relief—just support to get through the process,” he explained.
He also emphasized the extraordinary secrecy surrounding the deal.
“It was kept very tight—only a few lawyers, accountants, and regulators knew. When it hit the press that morning, even most HDFC employees were surprised.”
‘Sad Day and a Happy Day’ for HDFC
Describing the merger’s finalization, Parekh called it “a sad day and a happy day”—signifying the emotional weight of ending HDFC’s independent legacy while simultaneously embracing a stronger, consolidated future.
He concluded that India needs bigger banks, and strategic mergers like these pave the way for a more resilient and competitive financial sector globally.
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ICICI HDFC Merger Proposal, Chanda Kochhar Deepak Parekh, HDFC HDFC Bank Merger, Indian Banking Sector, RBI Pressure, Strategic Bank Mergers, ICICI HDFC History, Bank Consolidation India