Chanda Kochhar once proposed HDFC-ICICI merger, reveals Deepak Parekh

Deepak Parekh, former Chairman of HDFC, recently disclosed that ICICI Bank's then chief, Chanda Kochhar, had once proposed a merger between HDFC and ICICI Bank—years before HDFC's merger with its own banking arm.
Speaking during an interaction on Kochhar's YouTube channel, Parekh recounted, '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 said he politely declined the offer, saying it would not have been 'fair' or 'proper with our name and the bank and all.'
The much-publicised reverse merger between HDFC Ltd and HDFC Bank was finally completed in July 2023. Parekh explained that the merger was largely prompted by regulatory expectations. The Reserve Bank of India (RBI) had classified non-banking financial companies (NBFCs) like HDFC—then managing assets exceeding ₹5 trillion—as systemically important, crossing the regulatory threshold of ₹50,000 crore.
'RBI supported us and they pushed us into it to some extent and they helped us,' Parekh said. However, he clarified there were 'no concessions, no relief, no time, nothing.'
Reflecting on the final day of the merger, Parekh called it both 'a sad day and a happy day.' He added, 'It's good for the institution. It's good for the country to have large banks. Look at how large Chinese banks are. We have to be bigger, larger in India.'
Parekh believes India must foster consolidation in the banking sector to build globally competitive institutions. 'Banks in India must grow through acquisitions,' he stressed.
On the broader economy, Parekh flagged ongoing global uncertainty in supply chains, trade policy, and export dynamics as major worries for top CEOs.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Hindu

18 minutes ago

• The Hindu

Banks must act with social commitment, says MP

MP for Mysuru Yaduveer Krishnadatta Chamaraja Wadiyar on Saturday said banks should not simply chase profits but also operate with a strong sense of social responsibility. Presiding over the District-Level Advisory and Progress Review Committee meeting in Madikeri, Mr. Yaduveer called upon banks to extend lending support to farmers, small and medium enterprises, traders, and cottage industries. 'Inclusive development is the need of the hour, and banks must play an important role in ensuring it,' he said. He urged banks to strictly adhere to Central government guidelines and provide greater assistance to priority sectors such as agriculture, horticulture, animal husbandry, and fisheries. 'Banks should function as partners in realising Prime Minister Narendra Modi's vision of inclusive and sustainable development,' Mr. Yaduveer said. Stressing on the importance of language and communication, he said staff of nationalised banks should learn Kannada to connect better with local communities. 'It not only helps in addressing grievances efficiently but also strengthens public trust,' he added. RBI Assistant General Manager Suraj said that an online Kannada learning initiative for bank employees has already been launched. Presenting the overview of bank performance in the district during 2024-25, Lead Bank Manager Gangadhar Nayak said banks achieved 99% of the agricultural loan disbursement target, 97% in small-scale industries, 100% in educational loans, 74% in the housing sector, 104% in other priority sectors, 98% overall in the priority sector, and 117% in non-priority sector lending. The Annual District Credit Plan target for the year 2025–26 has been pegged at ₹7,680.10 crore. Sector-wise allocations include ₹3,477.86 crore for crop loans, ₹1,388.42 crore for small and medium industries, ₹33.27 crore for educational loans, ₹59.46 crore for the housing sector, and ₹115.53 crore for other priority sectors — totalling ₹5,074.54 crore for all priority sectors. A sum of ₹2,606.56 crore has been earmarked for non-priority sectors, he said. Zilla Panchayat Chief Executive Officer Anand Prakash Meena, Additional Deputy Commissioner R. Aishwarya, and officials from various departments and corporations attended the meeting.

India Gazette

25 minutes ago

• India Gazette

LIC Housing Finance reduces interest rate in line with recent RBI repo rate cut

New Delhi [India], June 21 (ANI): LIC Housing Finance has reduced its rate of interest on new home loans by 50 basis points, in line with the similar degree of repo rate cut by yje Reserve Bank of India (RBI). With this revision, interest rates on new home loan sanctions will now start from 7.50 per cent, effective June 19, 2025, coinciding with the company's 36th Foundation Day, it said in a statement Saturday. This move by LIC Housing Finance is aimed at passing on the benefit to new home loan customers to encourage home ownership and improve affordability. The recent frontloaded repo rate cut by the RBI was understandably aimed at boosting economy, which has relatively moderated. The policy rate cut and the subsequent decline in interest rates by banks will create demand for fresh credit, giving fresh life to the economy. After a total of 100 basis point repo rate reduction since February 2025, the scope for more rate cuts is limited, RBI Governor Sanjay Malhotra had hinted after the latest monetary policy meeting. Tribhuwan Adhikari, MD and CEO, LIC Housing Finance said 'As we mark our 36th Foundation Day, we remain committed to making home ownership more accessible. The rate cut is a continuation of our effort to align with RBI's policy direction and pass on the benefits to our customers.' 'We are confident this move will provide an added boost to housing demand, especially in the affordable and mid-income segments, where aspirations of owning a home are closely tied to interest rate dynamics,' the MD and CEO added. LIC Housing Finance Ltd is a leading housing finance company having networks of offices across India and a representative office in Dubai. In addition, the Company also distributes its products through branches of its subsidiary LIC HFL Financial Services Ltd. LIC Housing Finance Ltd was promoted by Life Insurance Corporation in 1989, and a public issue was made in 1994. (ANI)

Time of India

an hour ago

• Time of India

Rahul Gandhi Slams Modi Govt Over Make in India: ‘We Assemble, China Profits, Youth Suffer'

Congress MP and Leader of Opposition Rahul Gandhi has launched a scathing critique of PM Modi's 'Make in India' campaign, saying it's become little more than a slogan that benefits China more than Indian youth. During a visit to Delhi's Nehru Place market, Gandhi interacted with local mobile technicians and posted a video detailing how most electronics in India are just being assembled, not manufactured. He pointed out that the key parts come from abroad—largely from China—and claimed that assembling iPhones in India only helps Chinese exporters and Indian oligopolies, not workers or small manufacturers. Citing rising unemployment and falling manufacturing share in the GDP, Rahul Gandhi said India needs 'honest reforms' and real financial support for lakhs of small and medium producers. "Modi ji has mastered the art of slogans, not solutions," Gandhi remarked, adding that youth unemployment is at record highs and the PLI scheme is quietly being rolled back. This bold critique adds new heat to the debate on India's manufacturing policy just as economic indicators continue to draw concern.#rahulgandhi #pmmodi #makeinindia #modivsraga #unemployment #chinaindia #nehruplace #toi #toibharat #bharat #breakingnews #indianews Read More