In a surprising disclosure during a podcast, former HDFC chairman Deepak Parekh revealed that former ICICI Bank CEO Chanda Kochhar had once proposed a merger between ICICI and HDFC. This was long before HDFC’s eventual merger with HDFC Bank in 2023, he added.
During a candid conversation on Kochhar’s YouTube podcast, Parekh recalled, “You said ICICI started HDFC. ‘Why don’t you come back home?’ That was your offer. I remember it very clearly. It’s never been talked about in public, but I’m sharing it now.” Parekh said he declined the offer at the time, stating it “wouldn’t be fair” given the brands and institutional identities involved.
Parekh described the 2023 HDFC-HDFC Bank merger as a regulatory-driven move, not a strategic ambition. With HDFC’s assets crossing Rs 5 lakh crore, the Reserve Bank of India classified it as systemically important, pushing for tighter integration into the formal banking system.
Banks in India must grow through acquisitions
Reflecting on the merger day, Parekh called it “both a sad and a happy day”, adding that it’s good for the institution and the country to have bigger banks like that in China.
He further said that there is a need for more consolidation in India’s banking sector to create globally competitive financial institutions. “Banks in India must grow through acquisitions,” he noted.
Top concern for CEOs right now
Parekh also flagged global supply chain disruptions, trade tensions and export uncertainties as critical concerns for business leaders.
In terms of financial performance, ICICI Bank reported a 15% profit growth in FY25, while HDFC Bank posted an 11% rise. Both recorded similar net interest income growth, though ICICI outperformed with a net interest margin (NIM) of 4.41% against HDFC Bank’s 3.65%.