Deepak Parekh Reveals Why Chanda Kochhar Wanted to Merge ICICI Bank with HDFC

June 21, 2025: Deepak Parekh, former Chairman of HDFC, recently disclosed that ICICI Bank’s then-chief, Chanda Kochhar, had once proposed a merger between ICICI Bank and HDFC—years before HDFC’s own merger with its banking arm.

Speaking during an interview on Kochhar’s YouTube channel, Parekh recalled, “You said that ICICI started HDFC. ‘Why don’t you come back home?’ That was your offer.” However, Parekh politely declined, citing concerns over fairness and preserving the integrity of HDFC’s name.

The landmark reverse merger between HDFC Ltd and HDFC Bank was eventually completed in July 2023, driven largely by regulatory requirements. The Reserve Bank of India (RBI) had classified NBFCs like HDFC as systemically important after their assets crossed ₹5 trillion, pushing for consolidation.

“RBI supported us and they pushed us into it to some extent and they helped us,” Parekh said, adding there were no special concessions or time extensions.

Reflecting on the merger, Parekh called it “a sad day and a happy day” — positive for the institution and the country, highlighting the need for Indian banks to become larger and globally competitive. He emphasized that consolidation through acquisitions is essential for growth.

On the economy, Parekh pointed to ongoing global uncertainties in supply chains and trade policies as major concerns for CEOs. He also voiced worries about India’s insurance sector, describing it as “least understood” and criticized “mis-selling by banks” motivated by high upfront commissions.