ICICI sought to acquire HDFC, reveals chairman Deepak Parekh

Former HDFC chairman Deepak Parekh and ICICI Bank chief Chanda Kochhar

MUMBAI: Former HDFC chairman Deepak Parekh, in a candid disclosure, stated that then ICICI Bank chief Chanda Kochhar had proposed a merger between the 2 lenders – effectively earlier than HDFC’s eventual reverse merger with its banking subsidiary. During an interplay with Kochhar on her channel, Parekh stated: “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 stated he declined the provide, saying “it won’t be fair” or “proper with our name and the bank and all”.Parekh stated the eventual merger with HDFC Bank, accomplished in July 2023, was pushed primarily by regulatory stress. RBI had labeled NBFCs like HDFC, then holding belongings over Rs 5 lakh crore, as systemically vital, breaching the Rs 50,000-crore threshold. “RBI supported us and they pushed us into it to some extent and they helped us,” he stated. However, he added that there have been “no concessions, no relief, no time, nothing”.Describing the day the merger concluded, Parekh referred to as it “a sad day and a happy day”. He stated, “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 that Indian banks should develop via acquisitions to grow to be stronger in future.On broader financial issues, Parekh cited persistent uncertainty in provide chains, commerce coverage, and export circumstances as prime CEO issues. Calling insurance coverage the “least understood product”, Parekh criticised “mis-selling by banks” pushed by excessive upfront commissions.