ICICI sought to acquire HDFC, reveals chairman Deepak Parekh

MUMBAI: Former HDFC chairman Deepak Parekh, in a candid disclosure, mentioned that then ICICI Bank chief Chanda Kochhar had proposed a merger between the 2 lenders – properly earlier than HDFC’s eventual reverse merger with its banking subsidiary. During an interplay with Kochhar on her channel, Parekh mentioned: “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 mentioned he declined the supply, saying “it won’t be fair” or “proper with our name and the bank and all”.Parekh mentioned the eventual merger with HDFC Bank, accomplished in July 2023, was pushed primarily by regulatory strain. RBI had labeled NBFCs like HDFC, then holding property over Rs 5 lakh crore, as systemically necessary, breaching the Rs 50,000-crore threshold. “RBI supported us and they pushed us into it to some extent and they helped us,” he mentioned. 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 mentioned, “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 by way of acquisitions to change into stronger in future.On broader financial considerations, Parekh cited persistent uncertainty in provide chains, commerce coverage, and export circumstances as prime CEO considerations. Calling insurance coverage the “least understood product”, Parekh criticised “mis-selling by banks” pushed by excessive upfront commissions.