Latest news with #DeepakParekh
NDTV
an hour ago
- Business
- NDTV
ICICI Bank Made Offer To Acquire HDFC Ltd Before Reverse Merger: Ex-Chairman Deepak Parekh
New Delhi: Veteran banker and former chairman of HDFC Ltd, Deepak Parekh, has said that ICICI Bank had made an offer to take over mortgage lender HDFC Ltd but it was declined. HDFC Ltd, the parent entity of HDFC Bank, later merged with its banking subsidiary to create the country's biggest private sector lender. The merger became effective from July 1, 2023. With the reverse merger, the 44-year-old institution HDFC Ltd faded into memory lane. Interestingly, creation of HDFC Ltd was financially supported by erstwhile ICICI Ltd, the parent entity of ICICI Bank. During an interaction with ex-ICICI Bank MD and CEO Chanda Kochhar, released on YouTube, Parekh said, "I remember you talking to me said that ICICI started HDFC. 'Why don't you come back home?' That was your offer." However, Parekh said he declined the offer, saying "it won't be fair or proper with our name and the bank and all." Later eventual reverse merger with HDFC Bank, completed in July 2023, was driven mainly by regulatory pressure, he said, adding, "RBI supported us and they pushed us into it to some extent and they helped were no concessions, no relief, no time, nothing but they helped us to go through the process and get the approval." Describing the merger as good for the institution, he said, it is good for the country to have large banks. Indian banks must grow through acquisitions to become stronger in future, he added. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
India.com
5 hours ago
- Business
- India.com
ICICI-HDFC Merger Almost Happened? Deepak Parekh Shares Surprising Detail
New Delhi: In a surprising revelation, former HDFC chairman Deepak Parekh shared that ex-ICICI Bank CEO Chanda Kochhar had once suggested a merger between ICICI and HDFC—long before HDFC's own reverse merger with HDFC Bank took place. The idea, though never pursued sheds light on what could have been one of the biggest mergers in India's banking history. In a YouTube video, former HDFC chairman Deepak Parekh recalled a conversation with former ICICI Bank MD & CEO Chanda Kochhar. He said, 'I remember you talking to me once…you said that ICICI started HDFC. 'Why don't you come back home?' That was your offer.' Parekh shared that he had politely declined the idea, saying, 'It won't be fair or proper with our name and the bank and all.' He also noted that the HDFC-HDFC Bank reverse merger, which was completed in July 2023, was largely driven by regulatory pressures. Former HDFC chairman Deepak Parekh revealed that the merger with HDFC Bank, completed in July 2023, was largely driven by regulatory pressure. The Reserve Bank of India had classified large NBFCs like HDFC—those with assets exceeding Rs 5 lakh crore as systemically important, crossing the Rs 50,000-crore threshold. Talking about the RBI's role, Parekh said, 'The RBI supported us and they pushed us into it to some extent and they helped us…there were no concessions, no relief, no time, nothing but they helped us to go through the process and get the approval.' Speaking about the process, Parekh said, "RBI supported us and they pushed us into it to some extent and they helped us." However, he made it clear there were "no concessions, no relief, no time, nothing." Reflecting on the day the merger was finalized, Parekh described it as "a sad day and a happy day." He added, "It's good for the institution." Deepak Parekh shared that the RBI played a key role in the HDFC-HDFC Bank merger. "RBI supported us and they pushed us into it to some extent and they helped us," he said. However, he clarified that the process wasn't made easier in any way, adding there were "no concessions, no relief, no time, nothing." Reflecting on the day the merger was completed, Parekh called it "a sad day and a happy day," and added, "It's good for the institution."
Economic Times
9 hours ago
- Business
- Economic Times
ICICI Bank once wanted to acquire HDFC, Deepak Parekh spills the secret
Former HDFC chairman Deepak Parekh has revealed that former ICICI Bank chief Chanda Kochhar once proposed a merger between ICICI and HDFC, well before HDFC's reverse merger with its own banking a conversation with Kochhar on her 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 declined the offer at the time, saying it "won't be fair" or "proper with our name and the bank and all."Parekh described the eventual HDFC-HDFC Bank merger, completed in July 2023, as a move driven by regulatory compulsions rather than business ambition. The Reserve Bank of India had classified large NBFCs like HDFC, which then held assets exceeding ₹5 lakh crore, as systemically important — well above the ₹50,000-crore threshold."RBI supported us and they pushed us into it to some extent and they helped us," Parekh said. However, he added that there were "no concessions, no relief, no time, nothing." Parekh also said the deal had been executed with extreme confidentiality. '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 on the conclusion of the merger, Parekh called it "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."On April 4, 2022, HDFC Bank announced its plan to acquire mortgage lender HDFC in a deal valued at about $40 billion, creating one of the largest financial institutions in Indian history. The merger gave rise to a banking entity worth $172 billion, affecting tens of millions of customers and shareholders across both companies, along with their group insurance and asset management operations. Parekh said Indian banks must grow through acquisitions in order to become stronger in the future. He also listed key concerns for chief executives, including continuing uncertainty in supply chains, trade policies, and export the insurance front, Parekh described it as the "least understood product" and criticised "mis-selling by banks" which, he said, was driven by the lure of high upfront commissions. While HDFC Bank, in April this year, crossed the ₹15 lakh crore market capitalisation mark — an elite milestone — a quieter shift has been unfolding in the private banking space. ICICI Bank has steadily pulled ahead of HDFC Bank on several key performance metrics. ICICI Bank is now seen as a frontrunner among private sector lenders in India. HDFC Bank, meanwhile, has been navigating the after-effects of the 2023 merger, which have affected its growth FY25, ICICI Bank recorded profit growth of 15%, while HDFC Bank's profits rose by 11%. Both banks registered similar net interest income (NII) growth, but ICICI had a stronger net interest margin (NIM) of 4.41% compared with HDFC Bank's NIM of 3.65%.ICICI Bank also reported 14% growth in both advances and deposits for FY25. HDFC Bank, however, saw its advances grow at nearly half the pace of its merger added a substantial loan portfolio to HDFC Bank but did not bring in a matching level of deposits. This resulted in a spike in the loan-to-deposit ratio (LDR) to over 100% post-merger. Although HDFC Bank reduced this figure to 96.5% by the end of FY25, it still faces pressure to either increase deposits or slow down contrast, ICICI Bank's LDR stood at a healthier 82.4% as of March to the elevated LDR, HDFC Bank deliberately slowed down its credit expansion during FY25 to maintain balance. The bank's management believes that improving systemic liquidity will help raise deposits going forward.A high LDR suggests a bank is lending a large proportion of its deposits, which can become a risk if too many depositors withdraw funds at once and liquidity tightens.
Time of India
11 hours ago
- Business
- Time of India
ICICI Bank once wanted to acquire HDFC, Deepak Parekh spills the secret
Deepak Parekh revealed Chanda Kochhar's merger proposal between ICICI and HDFC, predating HDFC's reverse merger. Parekh cited regulatory pressure from the RBI as the primary driver for the HDFC-HDFC Bank merger, emphasizing the need for larger Indian banks. Post-merger, ICICI Bank has outperformed HDFC Bank in key metrics like profit growth and net interest margin. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Former HDFC chairman Deepak Parekh has revealed that former ICICI Bank chief Chanda Kochhar once proposed a merger between ICICI and HDFC, well before HDFC's reverse merger with its own banking a conversation with Kochhar on her 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 declined the offer at the time, saying it "won't be fair" or "proper with our name and the bank and all."Parekh described the eventual HDFC-HDFC Bank merger, completed in July 2023, as a move driven by regulatory compulsions rather than business ambition. The Reserve Bank of India had classified large NBFCs like HDFC, which then held assets exceeding ₹5 lakh crore, as systemically important — well above the ₹50,000-crore threshold."RBI supported us and they pushed us into it to some extent and they helped us," Parekh said. However, he added that there were "no concessions, no relief, no time, nothing."Parekh also said the deal had been executed with extreme confidentiality. '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 on the conclusion of the merger, Parekh called it "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."On April 4, 2022, HDFC Bank announced its plan to acquire mortgage lender HDFC in a deal valued at about $40 billion, creating one of the largest financial institutions in Indian history. The merger gave rise to a banking entity worth $172 billion, affecting tens of millions of customers and shareholders across both companies, along with their group insurance and asset management said Indian banks must grow through acquisitions in order to become stronger in the also listed key concerns for chief executives, including continuing uncertainty in supply chains, trade policies, and export the insurance front, Parekh described it as the "least understood product" and criticised "mis-selling by banks" which, he said, was driven by the lure of high upfront HDFC Bank , in April this year, crossed the ₹15 lakh crore market capitalisation mark — an elite milestone — a quieter shift has been unfolding in the private banking space. ICICI Bank has steadily pulled ahead of HDFC Bank on several key performance Bank is now seen as a frontrunner among private sector lenders in India. HDFC Bank, meanwhile, has been navigating the after-effects of the 2023 merger, which have affected its growth FY25, ICICI Bank recorded profit growth of 15%, while HDFC Bank's profits rose by 11%. Both banks registered similar net interest income (NII) growth, but ICICI had a stronger net interest margin (NIM) of 4.41% compared with HDFC Bank's NIM of 3.65%.ICICI Bank also reported 14% growth in both advances and deposits for FY25. HDFC Bank, however, saw its advances grow at nearly half the pace of its merger added a substantial loan portfolio to HDFC Bank but did not bring in a matching level of deposits. This resulted in a spike in the loan-to-deposit ratio (LDR) to over 100% post-merger. Although HDFC Bank reduced this figure to 96.5% by the end of FY25, it still faces pressure to either increase deposits or slow down contrast, ICICI Bank's LDR stood at a healthier 82.4% as of March to the elevated LDR, HDFC Bank deliberately slowed down its credit expansion during FY25 to maintain balance. The bank's management believes that improving systemic liquidity will help raise deposits going forward.A high LDR suggests a bank is lending a large proportion of its deposits, which can become a risk if too many depositors withdraw funds at once and liquidity tightens.
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Business Standard
12 hours ago
- Business
- Business Standard
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.
