ICICI Proposed Merger with HDFC Years Before Reverse Merger, Reveals Deepak Parekh
In a candid revelation, former HDFC chairman Deepak Parekh disclosed that ICICI Bank had shown interest in merging with HDFC long before HDFC’s eventual reverse merger with its banking subsidiary. During a conversation with former ICICI Bank chief Chanda Kochhar on her channel, Parekh shared details about the early merger proposal that had never been made public until now.
Parekh recalled the moment when Kochhar first brought up the idea. “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,” he said. He added that Kochhar had said, “ICICI started HDFC. Why don’t you come back home?” – referring to a merger or acquisition offer from ICICI Bank.
The proposal was significant because both ICICI Bank and HDFC are major players in India’s banking and financial services sectors, and their eventual merger in 2022 was one of the largest in the industry’s history. However, at that earlier stage, Parekh declined the offer, citing concerns about fairness and the legacy of the HDFC name.
He explained, “I said it won’t be fair or proper with our name and the bank and all.” Parekh’s decision underscored the pride and identity associated with HDFC, which had grown independently since its inception.
The revelation sheds light on the strategic discussions and negotiations that shaped India’s banking landscape over the years. While ICICI Bank eventually succeeded in merging with HDFC Bank through a reverse merger in 2022, this earlier attempt indicates that the idea had been on the table for a considerable time.
This disclosure provides valuable insight into the dynamics between two of India’s largest financial institutions and the thought process behind one of the most transformative mergers in Indian banking history. It also reflects the careful consideration leaders gave to preserving institutional identity while pursuing growth and consolidation.
